HUMAN AND CULTURAL VARIABLES IN GLOBAL ORGANIZATION

DEPT OF MANAGEMENT,
NORTH EASTERN HILL UNIVERSITY
( CENTRAL GOVT OF INDIA )
MANDEEP RANGSHA
MBA (GM 21/16)

CONTENTS:
1. INTRODUCTION TO ORGANIZATIONAL
STRUCTURE.
2. CULTURE.
3. HOFSTEDE‟S CULTURAL DIMENSIONS.
4. FACTORS AFFECTING CULTURAL &
HUMAN VARIABLES
5. THE EFFECT OF CULTURAL VALUES ON
MANAGEMENT
6. BIBLIOGRAPHY
7. CONCLUSION

INTRODUCTION:
 “Organizational culture is one of the latest concepts in
the fields of management and Organizational Theory”.
 “Culture is the complex whole emphasize by knowledge,
beliefs, art, law ,morals customs ,habits of man & other
capabilities as a member of society.”
 Culture is popularly called as „Shared values and
Beliefs‟ fulfills important functions.
1. It conveys the sense of identity for organizational
members.
2. It enhances social system ability.
3. It facilitates the generation of commitment to some
thing larger than self.
4. It serves as a sense of making device that can guide
and shape behavior.

CULTURE :
Is learned, not inherited.
Involves responses to a set of problems.
Is by a group.
Links group members by shared
experience.
Develops stable group membership.
Makes the whole different from the
simple sum of the parts.

Hofstede’s cultural dimensions
On multi-cultures the great work is done by Dutch
scientist, GEERT HOFSTEDE. Hofstede precedes the
GLOBE( Global leadership & organizational
behaviors effectiveness) research project. He
identifies mainly four cultural dimensions:
1. POWER DISTANCE.
2. UNCERTAINTY AVOIDANCE.
3. INDIVIDUALISM.
4. MASCULINITY.

POWER DISTANCE
Power distance is the extent to which less
powerful members of organizations accept that
power is distributed unequally. High power
distance countries have norms, values, beliefs
such as:
Inequality is fundamentally good.
Everyone has a place, some are high, some are
low.
Most people should be dependant on a leader.
The powerful are entitled to privileges.
The powerful should not hide their power.

Countries of High & Low power distance.
Low power distance countries: US, Austria, Ireland,
Norway & New Zealand.
High power distance countries: France, India,
Singapore, Brazil, Mexico & Indonesia.

Uncertainty Avoidance
Uncertainty(insecurity) avoidance is the extent to
which people feel threatened by confusing
situations & have created beliefs that try to avoid
these. High U.A accept:
 Conflict should be avoided.
 Conflicting people & ideas should not be tolerated.
 Laws are very important & should be followed.
 Experts & authorities are usually correct.
 Compromise/aggrement is important.
 Denmark & Britain are low U.A. cultures.
 Germany, Japan, & Spain are high
U.A cultures.

Individualism VS Collectivism
Individualism is the tendency of people to
look after themselves & their family only.
Collectivism belongs to groups & to look
after each other in exchange for loyalty.
Individualism is common in US. Canada,
Australia, Denmark & Sweden.
Collectivism famous in India, Indonesia,
Pakistan & south American countries.

Masculinity VS Femininity:
Masculinity refers to a situation in which the
dominant values in a society are success, money &
other material things. High Masculine cultures
beliefs:
Gender roles should be clearly well-known.
Men have self confident & are dominant.
People especially men should be significant.
Advancement, success & money are important.
High masculine societies choose jobs associated
with long-term careers & feminine societies choose
short term employment, before marriage.

Immediancy and expressiveness.
Immediancy stands for a society that
“suppresses fulfillment” of needs and
regulates it by means of social needs.
Expressiveness is a society that allows
“free fulfillment” of basic and natural
human drives related to enjoying life
and having fun.

National culture & Human behavior is also influenced
by:
Kinship : Family relations.
Education : Affects workers performance.
Economy : Resource allocation.
Politics : Govt system.
 Association : Group work (informal-formal)
Health : Level of productivity.
Recreation : Impact on attitudes.

FACTORS AFFECTING CULTURAL & HUMAN
VARIABLES
1.Social Institutions
2.Public Policy & Legal Framework
3.Societal Cultural Values

1.Social Institutions
Countries differs considerably in the
kind of social institutions they have
e.g.,
the way their education system
functions,
 the way financial system works,
the structures of governance etc.
which have a direct impact on how
business is conducted in that country.

For Instance:-
• 1.Education System in Germany has a heavy
emphasis on technical and apprenticeship
training, which can be historically traced back
to the artisan's guides of the Middle Age.
• 2.Similarly one finds the cultural values of
individualism and entrepreneurship embodied
in the American Venture Capitalist System.

2.Public Policy & Legal Framework
The government policies and legal structures
of different countries also reflects the cultural
values of the country. These influences the
business practices in 2 ways:
a) They determine the broader structure for
doing business in the country.
b) They influence and confine the
management practices within the company.

Example: -
Lifetime employment in Japan which is rooted in
the literal interpretation of Article 27 of Japanese
Constitution. It is supported by its cultural values
Shakaisei (Social Awareness) and Tate Shakai
(Social Order and control).

3. Societal Cultural Values:-
(i)The cultural values of the society
define the meaning and reason of the
business and how it is organized.
Example: - While US Companies
emphasizes more on the profit shares And
stock prices, while Japanese companies
focus more on new product development
and market share.

(ii)The cultural values have a major
influence on the way people relate to each
other and what they aspire for in a job.
Example:
In many categorized cultures (e.g. India,
Japan etc) the meaning and value of job lies
in the status more than in the pay packet.
ON the other hand in more unrestricted
cultures ( USA, Germany etc) people expect
rewards and compensation for their
performance than their seniority.

MODEL OF CULTURE
TIME FOCUS
MONOCHRONIC/
POLYCHRONIC
SPACE
PUBLIC/
PRIVATE
STRUCTURE
INDIVIDUALISM/
COLLECTIVISM
ACTION
DOING/BEING
TIME-
ORIENTATION
PRSENT
PAST
FUTURE
POWER
HIERARCHY
/
EQUALITY
COMMUNICATIO
N/
HIGH-CONTEXT
LOW CONTEXT
COMPETITION
COMPETITIVE/
COOPERATIVE
The Effect of Cultural Values on Management

BIBLIOGRAPHY
1. CROSS CULTURAL MANAGEMENT BY D.K.
BHATTACHARYYA.
2. INTERNATIONAL HR MANAGEMENT BY K.
ASHVTHAPA & SADHANA DAS.
3. CITEHR.COM.
4. SLIDESHARE.COM

CONCLUSION
Embrace different culture variables.
Build relationships.
Employ locals to gain cultural
knowledge.
Adapt products and practices to
local markets.
Coordinate by region.

HUMAN AND CULTURAL VARIABLES IN GLOBAL ORGANIZATION

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HUMAN AND CULTURAL VARIABLES IN GLOBAL ORGANIZATION