Page 41 - DMGT548_GLOBAL_HRM

Global HRM

Notes
Example: In DF cultures found in northern Europe, North America, Australia and New
Zealand; people are relatively open to doing business with strangers. This means, in DF countries
one can straight away talk business and get down to facts. The US is highly DF because Americans
are raised in a mobile immigrant society.
In RF countries, people get things done through relatives, friends, business contacts and
connections. The Chinese call this ‘guanxi,’ means ‘pull’ or ‘clout’. This is the only way to
break bureaucratic delays. One has to have patience dealing with RF companies.

Example: Volkswagen took nine years to negotiate with the government of China on
the opening of an automobile factory. It took twelve years for McDonald to work out an agreement
with the Soviet government to open the first Golden Arches restaurant in Russia.
DF cultures value direct, frank, straightforward language while their counterparts often
favour an indirect, subtle, roundabout style. They give priority to maintaining harmony
and a void saying anything that may cause embarrassment or loss of face to the other
party.

Example: Japanese never say the word ‘no’ but use other means to indicate the same.
2. Formal vs. Informal: Formal cultures tend to be organised in step hierarchies, which
reflect major differences in status and power. Informal cultures value more egalitarian
organisations with smaller differences in status and power. These contrasting values cause
conflict at the conference table. Formal way of addressing people and maintaining proper
protocol are ways of showing respect to people.

Notes Sweating His Way to Success

An American consultant with a decade of business experience in South Asia arranged for
his Chicago consultant to meet with the minister of textiles in Bangladesh. The company
had asked for a favourable decision on a complex issue involving garment quota allocations,
but was not optimistic about the outcome; a competitor who had made a similar request
had seen his application summarily rejected by mid-level bureaucrats in the ministry.
It was sweltering day in Dhaka and the minister’s air-conditioner too was not switched on.
This caused the visitor considerable discomfort because, at the consultant’s insistence he
was wearing dark suit with a tie. He sat steaming and sweating while the minister chatted
away amiably, cool and comfortable in his white muslin. After an hour and a half of
aimless conversation, the minister stood up and with a broad smile informed the petitioner
that he had decided to grant his request. The consultant learnt from his contacts in the
government that the minister had deliberately not turned on the AC for the meeting. ‘His
excellence may have been testing,’ said the contact.

People from egalitarian societies are often unaware of the importance of status distinctions
in hierarchical cultures. They often do not know how to show respect to high-ranking
persons from formal cultures that are easily offended by perceived slights. The lesson
here is that, when dealing with government officials in formal cultures, it is important to
show respect and deference.

36 LOVELY PROFESSIONAL UNIVERSITY