Page 35 - DMGT548_GLOBAL_HRM

Global HRM

Notes Power distance is greatest in Malaysia and least in Austria and Israel. The proportion of
supervisory personnel is less and the workforce will often consist of highly qualified
people in high power distance countries. The salary gap between levels will be higher.
Power will be reflected through status symbols. Status will be highly valued and have
higher motivational appeal. Management is more by control than by participation.
2. Uncertainty Avoidance: It is ‘the extent to which people feel threatened by ambiguous
situations, and have created beliefs and institutions that try to avoid those. High
uncertainty-oriented nations tend to have a high need for security and a strong belief in
experts and their knowledge.

Example: It includes Germany, Spain and Japan. Members in these countries are more
anxiety-prone and have high job stress. Employees place high premium on job security, career
planning, and health insurance and retirement benefits.
Countries with low uncertainty culture are more entrepreneurial, innovative and exhibit
less emotional resistance to change.

Example: Swedes suppress emotions and see shyness as a positive trait and talkativeness
as a negative one. In business, they opt for the rational than the emotional course. Swedes are
avid appliers of new technology and are ruthless in scrapping what is old inefficient.
Trade unions, which find a place on the board, will accept job cuts if they find rational
arguments in favour. Organisations encourage personnel to use their own initiative and
to assume responsibility for their actions. Sweden, the US and UK are examples of countries
with low uncertainty avoidance.

3. Individualism: Individualism is the tendency of people to look after themselves and their
immediate families only. These cultural differences are measured on a bipolar continuum
with individualism on one end and collectivism on other. Collectivism is the tendency of
the people to belong to groups and to look after each other in exchange for loyalty.

Example: Americans, high on individualist score, readily go to court against authority
and each other to claim their rights. Individual decisions are valued over group decisions and
individuals have the right to differ from majority opinion.
Wealthy countries have higher individualism scores, and poorer countries have higher
collectivism scores. Countries like the USA, Canada, Denmark, and Sweden have high
individualism and higher gross product. Japan is an exception. Conversely, countries like
Pakistan, or those in Latin America have low individualism (high collectivism) and low
gross national product.
4. Masculinity: Masculinity is defined as a situation in which the dominant values in society
are success, money, and things. Countries like Japan, with a high masculinity index, place
great importance on earnings, recognition, advancement and challenge.
Countries like Norway, with a low masculinity index, tend to place great importance on
cooperation, friendly atmosphere, and employment security. The workplace has a cordial
atmosphere and managers give more credit to employees and freedom to act.
Cultures with a high masculinity index like Germany and Spain favour large scale
enterprises. Economic growth is more important than conservation of environment.
Cultures with high femininity tend to favour small-scale enterprises and place great
importance on conservation of environment.

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