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  1. BRIEF LITERATURE REVIEW FROM THE THEORY OF HOFSTEDE & ITS IMPLICATION IN A MNC FOR STAFFING GLOBALLY 7/18/2014
  2. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally 1 | P a g e Manpower Planning HRM (504) Instructor: ATM Sayfuddin Doosto Foring Group Member: Name ID Signature Synthia Alam Orin 13104089 Tasnim Alam Smita 13104071 Rownak Jahan Moon 13204027 Hasiba Chowdhury 13204028 Shahidur Rahman Talukder 13204056
  3. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally TABLE OF CONTENTS 1. Answer to Quiz # 1: Demonstrate a brief literature review from the theory of Hofstede & its implication in your chosen context 2. Answer to Quiz # 2: Illustrate the significance of cultural awareness training program in the context of business 3. Answer to Quiz # 3: Choose countries you want to send the team 4. Answer to Quiz # 4: Design the training program based on the differences of cultures among your chosen countries as to enable the team to adapt their behavior accordingly 2 | P a g e
  4. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally 3 | P a g e Abstract As a Manager of HR department of an MNC which has operations in various continents including Asia-Pacific, Europe, Australia, America and Africa had to decide to send a team of 6 employees to Bangladesh, USA and UK of three different continents to observe operations. Considering the brief literature review from the theory of Hofstede & its implication. Considering the significance of cultural awareness training program. Considering the cultural aspect survey for the target countries to be staffed. Considering the designing the training program based on the differences of cultures among these three countries as to enable the team to adapt their behavior accordingly.
  5. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Answer to Quiz # 1: Demonstrate a brief literature review from the theory of Hofstede & its implication in your chosen context As a Manager of HR department of A&E, which has operations in 44 counties of various continents including Asia-Pacific, Europe, Australia, America and Africa had decided to send a team of 6 employees to Bangladesh, USA and United Kingdom of three different continents to observe operations. Beforehand I have to consider the brief literature review from the theory of Hofstede & its implication as follows: National Cultural Dimensions Culture is defined as the shared traditions, beliefs, customs, history, folklore, and institutions of a group of people. Culture is shared by people of the same ethnicity, language, nationality, or religion. It's a system of rules that are the base of what we are and affect how we express ourselves as part of a group and as individuals. 4 | P a g e “Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. He analyzed a large data base of employee values scores collected by IBM between 1967 and 1973 covering more than 70 countries, from which he first used the 40 largest only and afterwards extended the analysis to 50 countries and 3 regions. The values that distinguished countries from each other could be grouped statistically into four clusters. These four groups became the Hofstede dimensions of national culture:  Power Distance (PDI)  Individualism versus Collectivism (IDV)  Masculinity versus Femininity (MAS),  Uncertainty Avoidance (UAI) A fifth Dimension was added in 1991 based on research by Michael Bond, which is termed as Long-Term Orientation (LTO) and was applied to 23 countries. Power Distance (PDI) Power distance is correlated with income inequality in a country. This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of power distance accept a hierarchical order in which everybody has a place and which needs no further justification Individualism versus collectivism (IDV) Individualism is correlated with national wealth. The high side of this dimension, called Individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only. Its opposite, Collectivism, represents a preference for a tightly-knit framework in society in which
  6. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. A society's position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.” Masculinity versus femininity (MAS) Masculinity is correlated negatively with the percent of women in democratically elected governments. The masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material reward for success. Society at large is more competitive. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented. Uncertainty avoidance (UAI) Uncertainty avoidance is associated with the legal obligation in developed countries for citizens to carry identity cards. The uncertainty avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. Countries exhibiting strong UAI maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles. Long-term versus short-term orientation (LTO) Long-term orientation is correlated with school results in international comparisons. The long-term orientation dimension can be interpreted as dealing with society’s search for virtue. Societies with a short-term orientation generally have a strong concern with establishing the absolute Truth, which is normative in thinking and exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results. Societies with a long-term orientation, people believe that truth depends very much on situation, context and time and show an ability to adapt traditions to changed conditions, a strong propensity to save and invest thriftiness, and perseverance in achieving results. 5 | P a g e
  7. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Answer to Quiz # 2: Illustrate the significance of cultural awareness training program in the context of business Cultural awareness becomes central when we have to interact with people from other cultures. People see, interpret and evaluate things in a different ways. What is considered an appropriate behavior in one culture is frequently inappropriate in another one. Misunderstandings arise when I use my meanings to make sense of others reality. Increasing cultural awareness means to see both the positive and negative aspects of cultural differences. Cultural diversity could be a source of problems, in particular when the organization needs people to think or act in a similar way. Diversity increases the level of complexity and confusion and makes agreement difficult to reach. On the other hand, cultural diversity becomes an advantage when the organization expands its solutions and its sense of identity, and begins to take different approaches to problem solving. Diversity in this case creates valuable new skills and behaviors. In becoming culturally aware, people realize that:  We are not all the same  Similarities and differences are both important  There are multiple ways to reach the same goal and to live life  The best way depends on the cultural contingency. Each situation is different and may 6 | P a g e require a different solution. Diversity is reality. We are all connected through the increasing globalization of communications, trade, and labor practices. Changes in one part of the world affect people everywhere. Considering our increasing diversity and interconnected problems, working together seems to be the best strategy for accomplishing our goals. Because social and economic change is coming faster and faster, organizations understand the need for cultural competence. We're realizing that if we don't improve our skills we're asking for organizational and cultural gridlock.
  8. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Studies show that new entrants to the workforce and communities increasingly will be people of color, immigrants, and white women because of differential birth rates and immigration patterns. There are many benefits to diversity, such as the rich resource of alternative ideas for how to do things, the opportunity for contact with people from all cultures and nationalities that are living in your community, the aid in strategizing quick response to environmental change, and a source for hope and success in managing our work and survival. Benefits of building an organization's cultural competence are:  Increases respect and mutual understanding among those involved.  Increases creativity in problem-solving through new perspectives, ideas, and strategies.  Decreases unwanted surprises that might slow progress.  Increases participation and involvement of other cultural groups.  Increases trust and cooperation.  Helps overcome fear of mistakes, competition, or conflict. For instance, by understanding 7 | P a g e and accepting many cultures, everyone is more likely to feel more comfortable in general and less likely to feel the urge to look over their shoulders to be sure they are being "appropriate" in majority terms.  Promotes inclusion and equality. .
  9. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Answer to Quiz # 3: Choose countries you want to send the team If we explore the Bangladesh, USA and UK culture through the lens of the 5-D Model, we can get a good overview of the deep drivers of its culture relative to other world cultures. http://geert-hofstede.com/cultural-survey.html Power distance This dimension deals with the fact that all individuals in societies are 8 | P a g e not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. It has to do with the fact that a society’s inequality is endorsed by the followers as much as by the leaders. Bangladesh USA UK Bangladesh scores high on PDI (score of 80) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat The United States score low on PDI (40) which underscores the American premise of “liberty and justice for all.” Within American organizations, hierarchy is established for convenience, superiors are always accessible and managers rely on individual employees and teams for their expertise. Both managers and employees expect to be consulted and information is shared frequently. At the same time, communication is informal, direct and participative. At 35 Britain sits in the lower rankings of PDI – i.e. a society that believes that inequalities amongst people should be minimized. Interestingly is that research shows PD index lower amongst the higher class in Britain than amongst the working classes. The PDI score at first seems incongruent with the well-established and historical British class system and its exposes one of the inherent tensions in the British culture. A sense of fair play drives a belief that people should be treated in some way as equals. Individualism The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies
  10. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally 9 | P a g e people belong to ‘in groups’ that take care of them in exchange for loyalty. Bangladesh USA UK Bangladesh, with a score of 20 is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups The United States, with a score of 91 on this dimension, is a highly individualistic culture. This translates into a loosely-knit society in which the expectation is that people look after themselves and their immediate families. There is also a high degree of geographical mobility in the United States and most Americans are accustomed to doing business with, or interacting, with strangers. Consequently, Americans are not shy about approaching their prospective counterparts in order to obtain or seek information. In the business world, employees are expected to be self-reliant and display initiative. Also, within the exchange-based world of work, hiring and promotion decisions are based on merit or evidence of what one has done or can do. At a score of 89 the UK is amongst the highest of the individualistic scores, beaten only by some of the commonwealth countries it spawned i.e. Australia and the USA. The British are a highly individualistic and private people. Children are taught from an early age to think for themselves and to find out what their unique purpose in life is and how they uniquely can contribute to society. The route to happiness is through personal fulfillment. As the affluence of Britain has increased throughout the last decade, with wealth also ‘spreading North’, a much discussed phenomenon is the rise of what has been seen as rampant consumerism and a strengthening of the ‘ME’ culture. Masculinity / Femininity A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organizational behavior. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing
  11. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally 10 | P a g e out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine). Bangladesh USA UK Bangladesh scores 55 on this dimension and can be considered a masculine society. In masculine countries people “live in order to work”, managers are expected to be decisive and assertive, the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out. The United States score 62 on this dimension and is considered a “masculine” society. Behavior in school, work, and play are based on the shared values that people should “strive to be the best they can be” and that “the winner takes all”. As a result, Americans will tend to display and talk freely about their “successes” and achievements in life, here again, another basis for hiring and promotion decisions in the workplace. Typically, Americans “live to work” so that they can earn monetary rewards and attain higher status based on how good one can be. Conflicts are resolved at the individual level and the goal is to win. At 66 Britain is a masculine society – highly success oriented and driven. A key point of confusion for the foreigner lies in the apparent contradiction between the British culture of modesty and understatement which is at odds with the underlying success driven value system in the culture. Critical to understanding the British is being able to “read between the lines’’ What is said is not always what is meant. In comparison to feminine cultures such as the Scandinavian countries, people in the UK live in order to work and have a clear performance ambition. Uncertainty avoidance The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score. Bangladesh USA UK Bangladesh scores 60 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high uncertainty avoidance maintain rigid The US scores 46 on this dimension and therefore, American society is what one would describe as “uncertainty accepting.” Consequently, there is a At 35 the UK has a low score on uncertainty avoidance which means that as a nation they are quite happy to wake up not knowing what the day brings and they are happy to
  12. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally codes of belief and behavior and are intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation. 11 | P a g e larger degree of acceptance for new ideas, innovative products and a willingness to try something new or different, whether it pertains to technology, business practices, or foodstuffs. Americans tend to be more tolerant of ideas or opinions from anyone and allow the freedom of expression. At the same time, Americans do not require a lot of rules and are less emotionally expressive than higher-scoring cultures. ‘make it up as they go along’ changing plans as new information comes to light. As a low UAI country the British is comfortable in ambiguous situations - the term ‘muddling through’ is a very British way of expressing this. There are generally not too many rules in British society, but those that are there are adhered to (the most famous of which of course the British love of queuing which has also to do with the values of fair play). Most importantly the combination of a highly individualistic and curious nation is a high level of creativity and strong need for innovation. What is different is attractive! This emerges throughout the society in both its humor, heavy consumerism for new and innovative products and the fast highly creative industries it thrives in – advertising, marketing, financial engineering. Long term orientation The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with society’s search for virtue, the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view. Bangladesh USA UK Bangladesh scores 40, making it a short term orientation culture. Societies with a short-term orientation The United States scores 29 on this dimension and is a short-term oriented culture. As a result, it is a culture At 25 the UK scores as a short term oriented society which drives a great respect for history and tradition as
  13. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally generally exhibit great respect for traditions, a relatively small propensity to save, strong social pressure to “keep up with the Joneses”, impatience for achieving quick results, and a strong concern with establishing the Truth i.e. normative. 12 | P a g e focused on traditions and fulfilling social obligations. Given this perspective, American businesses measure their performance on a short-term basis, with profit and loss statements being issued on a quarterly basis. This also drives individuals to strive for quick results within the work place. There is also a need to have the “absolute truth” in all matters. well as a focus on quick results in the future. As mentioned above, planning horizons tend to be short and business particularly is very focused on short term quarterly goals and quick results. The notion of giving up something today for the promise of something bigger in the future is not a widely held notion, more usual is the belief that ‘a bird in the hand is worth two in the bush’.
  14. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Answer to Quiz # 4: Design the training program based on the differences of cultures among your chosen countries as to enable the team to adapt their behavior accordingly I have to consider designing the training program based on the differences of cultures among these three countries as to enable the team to adapt their behavior accordingly as follows: Culturally Competent Program Evaluation Defining Program Characteristics An evaluation for either a program or a system of care begins with defining consumer/population process and outcome characteristics. This gives the evaluation the data it needs to answer the key questions of which interventions work, for whom and how. Program characteristics are also key in designing an evaluation. The philosophy of the program or system determines the service model and the associated process characteristics to be examined. Process characteristics can include type and frequency of interventions, length of stay and attainment of individual treatment goals in care plans, staff involved in interventions and behaviors that change as a result of applying interventions. Culturally relevant process questions include: Culturally related outcome questions include:  How do outcomes differ across cultural, racial or ethnic groups’?  What outcomes are expected from the program and how do they compare to the functional expectations of individuals of the cultures/ethnicities/socioeconomic status being served?  How does the program relate to the community organizations/leadership that represent minority groups served‘? Evaluation Design and Sampling The nature of the actual design chosen has significant implications for culturally diverse groups.  Pre-post or multiple baseline designs are commonly used. However, culturally diverse populations sewed frequently change overtime for reasons other than interventions provided.  Single case methodology, which tracks ratings of selected target behaviors before and after intervention to determine effects, is useful in evaluations involving groups which have only small numbers of people available.  Longitudinal designs following a cohort of clients over time to measure outcome can be useful. Training Strategies for Cultural training programs for Bangladesh, USA & UK Selection of instruments and measurement strategies introduces many cultural considerations. Few instruments are appropriate for use across different cultural groups, and some have subtle but distinct cross-cultural biases (Purnariega Holzer & Swanson, I991) for and designed the training for the staffs, who are to be posted in Bangladesh, USA. The staffs were chosen for Bangladesh, USA & UK were given training for National Cultural dimensions for their easiest and quickest adaption with the culture of the posted countries according to the following criterion for Bangladesh, USA and UK staffs as per their staffing area. 13 | P a g e
  15. Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally Semantic equivalence: both translation across language as well as idioms and expressions of the groups being studied are accounted for and designed the training on this issues for Bangladesh, USA and UK staffs as per their staffing area. Content equivalence: the content of each item in the instrument is relevant to the phenomenon being studied in that culture and designed the training on these issues for Bangladesh, USA and UK staffs as per their staffing area. Criterion equivalence: the variable measured is interpreted based on the norms for that culture and designed the training on this issues for Bangladesh, USA and UK staffs as per their staffing area. Methodological equivalence: methods of assessment and data collection yield comparable responses across culture and designed the training on this issues for Bangladesh, USA and UK staffs as per their staffing area. 14 | P a g e
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