What is national culture? Please critically discuss the effect of (national) culture on Human Resource Management using two of the cultural dimensions developed by Geert Hofstede. Please illustrate your answer with examples.
Introduction
What is national culture? National culture within business will influence the managerial decisions and human resource management practices. Defined by Geert Hofstede there are four main or primary cultural dimensions which are uncertainty avoidance, power distance, individualism vs collectivism, and masculinity vs femininity, which aim to cope with uncertainty, inequality, or the gender emotional implications between a girl and a boy.
In this question, I will answer it on what is national culture, and in the way it will affect the area of Human Resource Management (HRM), using two of the cultural dimensions that Geert Hofstede has developed.
Uncertainty Avoidance
The first dimension I will be looking at is uncertainty avoidance, which is the extent to which members of a business or a society feel uncomfortable or uneasy when faced with situations that are deemed to be disorderly or unorganized. This shows that societies, cultures, or businesses with high uncertainty avoidance will tend to follow more safety and security measures and have strict laws, rules, and regulations to ensure that fewer mistakes will be created due to the need to have the certainty to be avoided higher. An example of countries that use high uncertainty avoidance is the likes of Greece or Japan. On the other side, low uncertainty avoidance has higher and faster decision-making and will have as few rules as possible, this is because they are willing to take more risks and will tend to be more tolerant and adaptive to changes. This shows that businesses, societies, or organizations will tend to trust their employees or members of society more-so with cultures that have higher uncertainty avoidance. Countries that swing to low uncertainty avoidance include Sweden and the United Kingdom.
Impact of Uncertainty Avoidance on HRM
In HRM, high uncertainty avoidance cultures like Japan and Greece typically implement strict protocols and comprehensive risk management strategies. For example, Japanese companies are known for their detailed job descriptions, extensive training programs, and long-term employment contracts, all of which aim to reduce uncertainty and create a sense of security among employees. Additionally, performance appraisals in high uncertainty avoidance cultures often rely on well-defined criteria and frequent evaluations to ensure consistency and fairness. This meticulous approach ensures that employees understand their roles and expectations, which can reduce anxiety and increase productivity.
On the contrary, in low uncertainty avoidance cultures like Sweden and the United Kingdom, businesses and HRM practices are characterized by flexibility, innovation, and a greater tolerance for ambiguity. These cultures tend to have fewer rules and regulations, encouraging employees to take risks and be adaptable. For instance, in Swedish companies, the organizational structure is often flat, promoting open communication and a collaborative work environment. Employees are given significant autonomy to make decisions and experiment with new ideas without the fear of strict penalties for failure. This approach can foster creativity and rapid decision-making, making these companies more agile in a fast-changing market environment.
Power Distance
Finally, the second dimension developed by Hofstede I will look at is Power Distance, which measures the degree to which members who are less powerful in organizations, businesses, or societies accept and expect that power is usually distributed unequally. In the world today, there is inequality everywhere, but the extent and degree of it will vary between different cultures and businesses. In a culture, business, or society where there is higher power distance, there will be more acceptance of difference and inequality between different positions and roles within it, such as hierarchical levels. Examples of high power distance countries include Russia and Malaysia. However, low power distance businesses, societies, or cultures tend to have no acceptance of inequality within or among the different hierarchical levels, focusing more on centered training and equality, as seen in countries like Austria and Denmark.
Impact of Power Distance on HRM
In HRM, high power distance cultures such as Russia and Malaysia tend to have a clear hierarchical structure where authority and decisions are centralized at the top. This can lead to a more autocratic leadership style where subordinates are less likely to question decisions or express dissent. For example, in Russian companies, decisions are often made by top executives, and employees are expected to follow instructions without question. This can create a formal and rigid work environment but can also ensure clear direction and efficient execution of tasks.
On the other hand, low power distance cultures such as Austria and Denmark emphasize equality and participative decision-making. In these cultures, employees at all levels are encouraged to share their opinions and contribute to decision-making processes. Danish companies, for instance, often employ a democratic leadership style where managers act as facilitators rather than authoritative figures. This approach can enhance job satisfaction, motivation, and innovation as employees feel valued and empowered.
Conclusion
In conclusion, the two dimensions developed by Hofstede show how national culture can have a profound effect on HRM, whether it is the uncertainty avoidance levels or the power distance levels. Hofstede defined culture as the ‘collective programming of the mind’. The two examples discussed play a vital role in HRM due to their implications for strict rules or trust and the acceptance of inequality. Understanding these cultural dimensions can help HR managers develop strategies that align with the cultural context of their organizations, leading to more effective management and improved employee satisfaction and performance.
2021-5-12-1620818268-b amended
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