Concept and role of culture in International human resource management

Concept and role of culture in International human resource management

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  Concept and roleof culture in International human resource management Presented by Manjula M 2nd M. Com G.F.G.C.W Holenarasipura Under the guidance of Sundar B. N. Asst. Prof. & Course Co-ordinator GFGCW, PG Studies in Commerce Holenarasipura
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  Introduction to culture A culturerefers to a system of shared meaning help by the organization’s members that distinguishs the one organization .
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  Meaning of culture Cultureis the social value that helps hold the organizations together.the culture serves us a sense making and control mechanism that guides and shapes the attitudes and behaviors of employees. Culture enhances the organisational commitment and increas the consistency of employee behaviour. Difination of culture “Common pattern of belief, assumptions, values and norms of behaviourof human group so”. (Aycen)
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  Concept of culturein IHRM The Concept of culture in IHRM played a major role in IHRM as it involves understanding and handing a new culture band a new social system what aspects should ban intentional HR manager should focus on and how he should respond to cultural differences in an international area and every country have a different cultures in HRM
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  Role of cultureIn IHRM 1. Multiculturalism 2. Cultural shock 3. Cultural predispositions 4. Importance of cultural awareness
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  Multiculturalism:- • Seen inMNC’s Or Global firms, means employees from many cultures work together in a firm. Nowadays, also seen in domestic firms. • For ex:- Infosys has 15% foreign employees, wipro has 10% such firms are multicultural out of choice whereas in MNC’s it is by design.
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  Culture shock :- Whenanyone travels abroad, they experience cultural differences in language, food, drees, hygiene, attitude to time etc... For travellers such differences will be novel but for those who Have to live and work in a new country, it is difficult. They experience culture shock – a shock reaction to new cultural experiences that cause psychological disorientation because they misunderstand or do not recognize feeling about host country it’s people and creates longing to go back home.
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  Cultural predispositions:- Most MNC’sfavor four cultures:- 1. Ethnocentrisms 2. Policentricism 3. Geocentricism 4. Regeiocentricism
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  Ethnocentrisms • Home country’sculture is imposed on its subsidiaries, mnc applies it’s home office HR policies and practices to foreign locations. • Expatriates from the Mess home country manage the subsidiaries locals occupy low level and supporting jobs, expatriates are selected on the basis of their past performance and technical competence. • Compensatiom and performance apprisal is according to home country standards .
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  Policentricism:- • MNC‘s adoptsto local cultural needs of subsidiaries. • For ex:_ product is customized to meet customer tastes, policies adopted to suit local needs MNC operations are managed by host country employees. Subsidiaries do not have absolute freedom to run their units. • MNC‘s conduct extensive training programs for host • Country managers who visit home offices for long periods • ( trained in company culture and to also respect host country beliefs and values.)
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  Regeocentricism • MNC‘s operatein the same way as policentricism. A policentric company adopts IHRM practices to countries and in regiocentric company adopts to IHRM practices in regions. • Has same advantages and disadvantages as policentricism.
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  Geocentricism • Subsidiaries aremanaged by best people. Taken from either host country or home country or third country. • Capable managers adopts easily to different cultures are usually billgual or multilingual. • More compensation than host country nationals
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  Importance of cultural awareness:- If MNC’s have culturally insensitive attitudes or beliefs like ‘what works at home will here ‘. This causes international business failure. HR manager had to aware of cultural differences, hiring, promoting, rewarding to host country system. An Mac’s will oppoint an expatriate General manger and a local HR manager this will lead to problem.
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  Conclusion:- We are alreadyknow how culture plays a major role in IHRM so the culture of the workplace controls the way employees behave amongst themselves as well as with people outside organization. References: https:// Youtu.be/svvwlmgwmt4 https://everythingwhat.com/what-is-therole of culture-in-ihrm.