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Dr. jhansi rani M R - cross cultural management (IHRM)

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Dr. jhansi rani M R - cross cultural management (IHRM)

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All the topics connected to Cross cultural management are covered such as Socio-cultural context, Culture and employee management issues, responding to diversity, challenges of localization, global integration cultural shock and cultural sensitivity etc.

All the topics connected to Cross cultural management are covered such as Socio-cultural context, Culture and employee management issues, responding to diversity, challenges of localization, global integration cultural shock and cultural sensitivity etc.

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Dr. jhansi rani M R - cross cultural management (IHRM)

  1. 1. MODULE-2 Cross Cultural Management Dr. Jhansi Rani M R
  2. 2. Concept of Culture • Culture is the configuration of learned behavior and result of behaviour whose component elements are shared and transmitted among the members of a particular society. Culture is Relative that guide the behaviour of people in a society / community and that are passed on from one generation to the next.
  3. 3. Elements of Culture • Culture has normative value. It prescribes Do’s and Don’ts which are binding on the members of a society. • Culture is a group Phenomenon. • Cultural practices are passed on from generation to generation
  4. 4. What is Cross-Cultural Management? CCM is a fairly new field that is based on theories and research from: • Cross Cultural Psychology • International Business • Organizational Behavior • Human Resources • Anthropology
  5. 5. Goals for Cross-Cultural Management Cross Cultural Management seeks to • understand how national cultures affect management practices • identify the similarities and differences across cultures in various management practices and organizational contexts • increase effectiveness in global management
  6. 6. Factors Create Issues in Cross Cultures (Brief) • Language • Nationality • Sex • Education • Profession • Ethnic group • Religion • Social class • Corporate culture • Family • Values • Norms • Attitudes • folkways • Customs
  7. 7. Why Should International HR Manager Needs to be Acquainted to Cultural Sensitivity? • Communicate effectively with customers, suppliers, business associates and partners in other countries and foreign employees (expatriates). • Conduct negotiations and understand the nuances of the beginning postures of the other parties into a negotiation. • Predict trends in social behaviour likely to affect the firm’s foreign operations. • Understand the ethical standards and concepts of social responsibility in various countries. • Build Foster relationships between union confederations and employee associations require cultural empathy. • Understand local Government policies and influences it for business promotion. • Conduct efficient meetings in different countries and encourage employees participation in management. • Understand how people interpret market research an other information.
  8. 8. Cultural Shock • Cultural shock is the experience of a new culture can be viewed as an unpleasant or unwelcome surprise or shock, which comes about when a person’s expectations do not coincide with the reality. • Culture shock as an anxiety reaction due to not being able to understand, control or predict the behavior of other people.
  9. 9. Phases of Cultural Shock
  10. 10. Negative Signs of Cultural Shock • Irritability • Fluctuating appetite • Moodiness • Disrupted sleep • Homesickness • Spending time alone • Depression • Alienation • Avoiding the locals • Reading all day • Boredom • low energy • Confusion • Anxiety • Negativity • Depression • Physical illness
  11. 11. Positive Signs of Cultural Shock
  12. 12. OCTAPACE – To Managing Cultural Shock to Mitigate the problems
  13. 13. ISSUES IN DEALING WITH A MULTICULTURAL/DIVERSE WORKFORCE • Communication Gap: Employees from different nations and regions are being recruited and posted anywhere across India which ultimately lead to communication gap. Managers and the subordinates, if are from different cultural roots, may fail to understand each other’s point of view due to communication as well as mental gap. • Cross cultural management has to be dynamic in nature: When different people from different background come together for a specific goal, they share their valuable knowledge with each other for a better learning process and teamwork. • Different pattern of behavior: When two or more people with different morals and values come under the same roof for the same purpose, may get collided with each other, for having different attitude and behavior, to make a unanimous decision. With the rapid flow of national and international trade, these situations are often arising out in front of managers of MNCs and ITs all over the world. • Impact of regional culture: Every Organization operate in a society and some way or the other are influenced by social festivals, rituals and customs. Companies like IBM, TCS, Deloitte, Google, Microsoft have their branches in various states in India. Not permitting regional/ state holidays, may turn out to be a big issue for the locals working in that particular organization.
  14. 14. ISSUES IN DEALING WITH A MULTICULTURAL/DIVERSE WORKFORCE • Diversified habits and Etiquettes: Though in organizations only corporate etiquettes are acknowledged and acceptable, still employees unknowingly act according to the habits inculcated within them. • Partiality: Sometimes managers are alleged of being partial for some employees of his or her own community. It is true that managers sometimes get influenced by Halo effect and take some bias decisions. • Ethnocentrism: It is a tendency of considering one’s own cultural superior over other’s culture, the way they work and their behavior towards working are only the correct way to do so than others, working on the same project.
  15. 15. How to Manage Diversity in the Workplace? • Managing diversity in the workplace presents a set of unique challenges for HR professionals. These challenges can be mitigated if an organization makes a concerted effort to encourage a more heterogeneous environment through promoting a culture of tolerance, open communication and creating conflict management strategies to address issues that may arise. • For leadership to effectively manage diversity in the workplace, they need to understand their backgrounds and how their behavior and beliefs can affect their decision-making within a diverse environment.
  16. 16. Tips for Managing Diversity at Workplace • PRIORITIZE COMMUNICATION To manage a diverse workplace, organizations need to ensure that they effectively communicate with employees. Policies, procedures, safety rules and other important information should be designed to overcome language and cultural barriers • ENCOURAGE EMPLOYEES TO WORK IN DIVERSE GROUPS Diverse work teams let employees get to know and value one another on an individual basis and can help break down preconceived notions and cultural misunderstandings. • BASE STANDARDS ON OBJECTIVE CRITERIA Set one standard of rules for all groups of employees regardless of background. Ensure that all employment actions, including discipline, follow this standardized criteria to make sure each employee is treated the same. • BE OPEN-MINDED Recognize, and encourage employees to recognize, that one’s own experience, background, and culture are not the only with value to the organization. • HIRING To build a diverse workplace, it is crucial to recruit and hire talent from a variety of backgrounds. This requires leadership and others who make hiring decisions to overcome bias in interviewing and assessing talent.
  17. 17. Tips for Managing Diversity at Workplace: Policies and Procedures  Organizations that embrace diversity also need to ensure that there are policies and practices in place to protect employees’ rights and stay compliant with government regulations.  It is essential for an organization to think about the impact that company policies and practices have on a diverse group of employees. • DOCUMENTATION OF POLICIES AND PROCEDURES Properly documenting diversity policies is an effective means of communicating an organization’s stances on diversity. Once concrete plans are ready to be implemented, documents that outline each policy should be included in the employee handbook. • ZERO-TOLERANCE POLICY Having a diverse workplace means that off-color jokes about ethnicity, gender, sexual orientation or religion need to be met with zero-tolerance enforcement. • SENSITIVITY TRAINING Employees need to be aware of how to coexist with a diverse range of people, as well as be cognizant of cultural sensitivity, to achieve harmony within a diverse workplace. • STAY ABREAST OF DIVERSITY LAWS Managing diversity in the workplace means that businesses need to keep abreast of changing employer-related laws and trends, especially diversity-related changes.
  18. 18. Results of Successful of Cross Cultural Management  Managing multi-cultural initiatives help an Organization keep a competitive HR advantage through: • Improved corporate culture • Improved employee morale & higher retention of employee • Enabling the organization to move into emerging markets • Decreased interpersonal conflict among employees • Increased productivity, innovation & brand identity
  19. 19. Handling Multi-Cultural Teams • Respect for each-other • Inter-personal relations • Initiative & Adaptability • Understanding of unique cultural context • Equal participation • Ability of sensitive listening
  20. 20. Localization and its Challenges • localization is a major aspect of designing IHRM strategy. Localization is a situation where a company adopts management practices used by domestic companies in the host country. ... In this country, the company is structured on the traditional concept of seniority. • Localization is essential, but it isn’t easy. Understanding the challenges of localization when expanding into new markets will help your company better prepare for the road ahead and choose the Translation Management System (TMS) best aligned with your globalization strategy. • If we go on counting the major localization challenges for global businesses, they will end up with a surprising figure. Don’t be shocked. Every modern entrepreneur desires to capture global customers, create seamless experience for them, talk to them in their native language and advertise in a manner that touches their heart. But unfortunately, some business owners get messed up in several challenges in localization of international advertising and marketing. • In simple words, they fail to translate as well as adapt their content as per the target population. Localization may definitely sound as easy, but, it is not. Also, most of the entrepreneurs fail to spot the difference between translation and localization and thus, they market their products/ services with a poorly localized content. Obviously, in such cases, the result turns out to be risky for the brand. • After over a decade of helping companies of all sizes go global and providing a best-in-class SaaS translation platform, we’ve been able to identify the most common challenges that companies of sizes and stages run into when localizing. Here are the six biggest challenges of localization and translation management, and how to overcome them.
  21. 21. Challenges of Localization The 6 Biggest Challenges of Localization 1.Not knowing where to start. Localization is a growing industry. 2.Lacking the necessary resources. Successful localization goes beyond choosing a translation management platform. 3.Still relying on manual processes. 4.Delaying or extending launches. 5.Not enough communication. 6.Not shopping around.
  22. 22. GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS • Global integration is the degree to which the company is able to use the same products and methods in other countries. Local responsiveness is the degree to which the company must customize their products and methods to meet conditions in other countries. • Local responsiveness is the degree to which the company must customize their products and methods to meet conditions in other countries. The two dimensions result in four basic global business strategies: export, standardization, multidomestic, and transnational. These are shown in the figure below.
  23. 23. GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS TO IHRM
  24. 24. GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS TO IHRM Export Strategy An export strategy is used when a company is primarily focused on its domestic operations. It does not intend to expand globally but does export some products/People resources to take advantage of international opportunities. It does not attempt to customize its products/people for international markets. It is not interested in either responding to unique conditions in other countries or in creating an integrated global strategy. Standardization Strategy A standardization strategy is used when a company treats the whole world as one market with little meaningful variation. The assumption is that one product can meet the needs of people everywhere. Many business-to-business companies can use a standardization strategy. Machines tools and equipment or information technologies are universal and need little customization for local conditions. CEMEX, the Mexico-based cement and building materials company, was able to expand globally using a standardization strategy. Apple uses a standardization strategy because its products do not have to be customized for local users. An iPod will look the same wherever you buy it. Domino’s Pizza also uses a standardization strategy. Although toppings may vary to meet local tastes, the basic recipes are the same and the store model of carryout or delivered pizza is the same everywhere. A standardization strategy produces efficiencies by centralizing many common activities, such as product design, gaining scale economies in manufacturing, simplifying the supply chain, and reducing marketing costs.
  25. 25. GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS TO IHRM Multi-domestic Strategy A multi0domestic strategy customizes products or processes to the specific conditions in each country. In the opening example, Lincoln Electric should have used a multi-domestic strategy to customize its manufacturing methods to the conditions in each country where it built factories. Retailers often use multi-domestic strategies because they must meet local customer tastes. 7-Eleven is an example of a company using a multi-domestic strategy. It tailors the product selection, payment methods, and marketing to the values and regulations in each country where it operates. For example, in Japan, 7-Eleven allows customers to pay their utility bills at the store. In a company with a multi-domestic strategy, overall management is centralized in the home country but country managers are given latitude to make adaptations. Companies sacrifice scale efficiencies for responsiveness to local conditions. Companies benefit from a multi-domestic strategy because country managers understand local laws, customs, and tastes and can decide how to best meet them. Transnational Strategy A transnational strategy combines a standardization strategy and a multi-domestic strategy. It is used when a company faces significant cost pressure from international competitors but must also offer products that meet local customer needs. A transnational strategy is very difficult to maintain because the company needs to achieve economies of scale through standardization but also be flexible to respond to local conditions. Ford Motor Company is adopting a transnational strategy. Ford is producing a “world car” that has many common platform elements that accommodate a range of add-ons. That way Ford benefits from the standardization of costly elements that the consumer does not see but can add custom elements to meet country laws, can customize marketing to local standards, and can provide unique products to meet local tastes.
  26. 26. HR Ground Realities in Indian Context  HRM, is strongly influenced by: • Local Culture • Social Norms • Local beliefs & practices  Frequent failure of some MNCs: • A common mistake: overlooking the local ground realities under the unconscious bias of their parent Corporate Culture, Policies & Practices  People management in India or any other alien overseas operation cannot be successful managed in any “Japanese” or “American” or “Korean” or “Arab” or “European” way
  27. 27. HR Ground Realities in Indian Context  HR Policies, system & practices based on the culture & core values of the parent company may or may not work in the Indian Context  Key to success lies in embracing flexibility, understanding, acceptance, respect & adaptability to the local ground realities  Collaborative process of gradual change through trust, mutual exchange, training & flexible management approach can help in establishing a strong link & facilitate desired results
  28. 28. HR Ground Realities in Indian Context  Maruti is the most successful & live example of such business success in India –The Suzuki Way –credit to Chairman O. Suzuki & the SMC Top Management Team.  The team Govt. thus decorated Chairman O. Suzuki with – PADMA VIBHUSHAN –the highest Indian honour in year 2007

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