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Culture IHRM IBO 2014 1

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Culture IHRM IBO 2014 1
BO6201 - IBO

- Culture & IHRM
• Culture and its importance in international business
– National, organisational and industry cultures
– Dimensions of culture
– Cross cultural negotiations
• International HRM
– Its roles
– Ex-pats, locals and TCNs

© Chris Davison

22 Oct 2014

Chris Davison
c.davison@kingston.ac.uk
tel: +44 7910 764 758

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Globalisation is leading to . . .
• Physical mobility
– Dramatically increased flows and mobility of international talent
• Short- vs long-term
• Self- vs organisation initiated
• Developing vs developed world

• Virtual mobility
– Increasingly complex configuration of teams
• Multicultural
• Matrices
• Extra organisational
Source: Christina Butler 2014
© Chris Davison

22 Oct 2014

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Importance of Culture in
International Business
• Employees
– How can we best motivate and engage our people?
• Overseas staff?
• Suppliers & Distributors?
• Customers
– Is our offer suitable for the foreign market?
• Product or service itself?
• How should we promote it?
• How should we distribute it?
Offer  product or service
© Chris Davison

22 Oct 2014

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3

What is Culture?
• Culture is “the collective programming of mind which distinguishes one category of people from another”
• Geert Hofsted 1980

• Culture is how things are done around here.
• Drennan 1992

• Corporate culture is the implicit, intrinsic and informal consciousness of the organisation
• Scholz 1987

© Chris Davison

22 Oct 2014

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Three Layers of Culture

© Chris Davison

22 Oct 2014

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5

Danger of Self Reference Criterion
• We tend to assume that foreigners will have the same values and attitudes as ourselves. (Self-reference criterion) Lee 1966

• To avoid the SRC we need to research foreign cultures and adapt our business practices accordingly

© Chris Davison

22 Oct 2014

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© Chris Davison

22 Oct 2014

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Interaction of Cultures
Culture is learned from ones environment

Professional

An individual’s culture is an
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