MGI 301 Lecture Notes - Lecture 15: Human Capital, Cultural Diversity, Culture Shock
20 Jun 2018
School
Department
Course
Professor
Managing Human Resources Globally
Introduction
Organizations function in a global economy
International competition is major factor affecting HRM
International expansion can provide a competitive advantage:
olarge numbers of potential customers
olow-cost labor
otelecommunications and information technology enables work to be done more
rapidly, efficiently and effectively
o Factors Affecting HRM in International Markets
Hofstede’s Five Cultural Dimensions
1. Individualism/collectivism - degree to which people act as individuals rather than as
members of a group.
2. Power distance - how a culture deals with hierarchical power relationships.
3. Uncertainty avoidance - how cultures deal with the fact that the future is not perfectly
predictable.
4. Masculinity-femininity - division of roles between the sexes within a society.
5. Long-term/short-term orientation - tendency of a culture to focus on long-term benefit
or short-term outcomes.
Hofstede’s Five Cultural Dimensions-Examples
US, Great Brittan and the Netherlands have highly individualist cultures-people are
expected to look after their own interests and those of their immediate families
Columbia, Pakistan and Taiwan are considered collectivist cultures-people are expected
to look after the interest of the larger community
In Mexico and Japan have a higher power distance than the US (ex. Addressing people
as “Mr.” or “Mrs.”)
Germany and Japan are known to have masculine cultures (importance of showing off
or achieving something visible) while Sweden and Norway are known to have feminine
cultures (ex. Putting relationships before money)
Implications of Culture for HRM
Culture impacts approaches to managing people.
Culture differs on how employees expect leaders to lead, how decisions are
handled and what motivates individuals.
Culture influences appropriateness of HRM practices.
Cultures influences compensation systems and communication and coordination
processes.
Cultural diversity programs foster understanding of other cultures to better
communicate with them.
Education/Human Capital
Countries differ in their levels of human capital.
Human capital is the productive capabilities of individuals—that is, knowledge, skills,
and experience that have economic value.
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Document Summary
International competition is major factor affecting hrm. International expansion can provide a competitive advantage: large numbers of potential customers, low-cost labor, telecommunications and information technology enables work to be done more rapidly, efficiently and effectively, factors affecting hrm in international markets. Us, great brittan and the netherlands have highly individualist cultures-people are expected to look after their own interests and those of their immediate families. Columbia, pakistan and taiwan are considered collectivist cultures-people are expected to look after the interest of the larger community. In mexico and japan have a higher power distance than the us (ex. Germany and japan are known to have masculine cultures (importance of showing off or achieving something visible) while sweden and norway are known to have feminine cultures (ex. Culture differs on how employees expect leaders to lead, how decisions are handled and what motivates individuals. Cultures influences compensation systems and communication and coordination processes.
