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Unit 2: Cultural Aspect of International Assignments

produced, to Portugal where microchips are made to Germany where cameras are produced. Notes
There are operations in the UK and in Slovakia.
Samsung has developed a synthesis of management styles, taking the best from the
European and Korean approaches. For example, in Germany the emphasis is given to
individual workers as the company recognises that individual ability is high. In South
Korea, on the other hand, emphasis is placed on teamwork. A further difference appears
when looking at the structural design adopted by the company. A bureaucratic approach
is followed in its home country, something that would not find favour in Europe.
Hence in UK and other European countries, the company’s structure is flat and authority
devolved. Creating an indigenous management style is also part of the company’s strategy
to make its European operations self-sufficient, based on the need to have fast response
time to market changes.
Source: P.L. Rao, International Human Resource Management, First Edition, Excel Books, New Delhi,
2008.
Self Assessment

Fill in the blanks:
1. ………. is an essential element which distinguishes one culture from another.
2. Learning and sharing cultural values happens through the ………… system.
3. The ………… of a culture refers to designs, forms, colors, shapes, sounds; things conveying
the concept of beauty and good taste.
4. Globalisation of media encouraged the convergence of certain aspects of ………… among
nations.
5. ………… are among the building blocks of culture.

2.2 Issues in Organisational Cultures

In order to analyse the influence of different national cultures and finding a common dimension
of culture across the countries, G. Hofstede gathered the data from the surveys and found that:
1. Work-related values are not universal;
2. Underlying values persist when a multinational company tries to impose the same norms
on all its foreign interests;
3. Local values determine how the headquarters’ regulations are interpreted;
4. By implication, a multinational that tries to insist on uniformity is in danger of creating
morale problems and inefficiencies.
The four well-known dimensions that Hofstede examines were:
1. Power Distance: It is ‘the extent to which less powerful members of organisations accept
that power is distributed unequally.’ It is the distance between individuals at different
levels of hierarchy. Countries in which people blindly obey the orders of their superiors
have high power distance.

Example: Mexico, South Korea and India. In such societies, lower-level employees tend
to follow orders as a matter of procedure. Even at higher levels, strict obedience is the practice.

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