CULTURE AND

INTERNATIONAL HRM

AMITABH DEO KODWANI

 Cultural Integration

National/Local Organizational Core

Culture Values (Mission/Vision)

Organizational
Culture
 Components of Culture (Schein, 1990)

• Underlying Assumptions – about workplace/job requirements/condition of

employment
• Values – Cost control, Customer-satisfaction, team work
➢ Exposed Values – Said by Top Management
➢ Enacted Values – What employees infer those values to be
• Employees Perception of Management Practices (especially HR practices)
• Cultural Artifacts - Heroes, Rituals, Stories, Jargons, appearance of employees
and facilities
Hofstede Cultural Dimensions
 LEARNING FROM CASE – SONOCO
Work/Critical Tasks
• Workflow Leadership
Strategic Choices
Vision/Mission • Processes

Culture
People • Norms/Values
• HR Capabilities • Communication Networks
• Competencies • Informal Roles
• Informal Power

Formal Structure Nadler Tushman

Congruence Model
• Strategic Grouping
• Rewards
• Informal System
Inter-Relationships Between Approaches in the Field
International assignments create expatriates
Employee Engagement
 Employee Happiness

Psychological
Physical Well-Being Social Well-Being
Well-Being
Work in/with an organization where
ALL EMPLOYEES say,

“I LOVE MY JOB!”
What is Employee Engagement?

E m p l o ye e E n ga ge m e nt D ef i n i t i o n

Employee engagement is the extent to which

employees feel passionate about their jobs,
are committed to the organization,
and put discretionary effort into their work.
Defining Employee Engagement

• Engagement is the energy, passion, or ‘fire in the

belly’ employees have for their employer

Defining Engagement

‘Stay’—Desire to be a member of the

organisation

‘Say’—Speak positively about the

organisation

‘Strive’—Go beyond what is minimally

required
 Defining Employee Engagement—The Drivers
People
▪ Senior Leadership Opportunities
▪ Immediate Manager ▪ Career Opportunities
▪ Co–workers ▪ Learning/Development
▪ Customers

Total Rewards Work

▪ Pay ▪ Work Activities
Engagement ▪ Resources
▪ Benefits
▪ Recognition ▪ Processes

Company Practices Quality of Life

▪ People Practices ▪ Work/Life Balance
▪ Policies ▪ Physical Work
▪ Diversity Environment
▪ Performance Assessment
▪ Company Reputation
Got questions?

amitabhk@iimidr.ac.in
EMPLOYEE VALUE PROPOSITION
Amitabh Deo Kodwani
 SOCIAL IDENTITY THEORY (HENRI TAJFEL)

• SOCIAL IDENTITY IS A PERSON’S SENSE OF WHO THEY ARE BASED ON THEIR GROUP
MEMBERSHIP(S).

• PEOPLE WANT TO LINK THEMSELVES TO A GROUP THAT BECOME PART OF THEIR IDENTITY

• IT INVOLVES VALUE CONGRUENCE TO IDENTIFY WITH AN ORGANIZATION (EDWARDS, 2005)

• THIS ASSOCIATION PROVIDES IMPORTANT SOURCE OF PRIDE AND SELF-ESTEEM

• IT GIVES A SENSE OF BELONGING TO THE SOCIAL WORLD.

• IN ORDER TO INCREASE OUR SELF-IMAGE WE ENHANCE THE STATUS OF THE GROUP TO WHICH WE
BELONG
 ORGANISATIONS WITH AN ATTRACTIVE PERCEIVED ORGANISATIONAL
IDENTITY:

 Tend to be associated with higher levels of organisational identification (Dukerich et al., 2002)
 Reduces employees intentions to leave & increases productivity
 Satisfies Esteem needs of employees

 Fair organisational procedures help encourage employees to identify with the

organization (Olkkonen and Lipponen, 2006)
 employees are more likely to identify with the organisation when they perceive that
the organisation is supportive of its employees (Sluss et al., 2008; Edwards, 2009)
 higher levels of employee identification are found where an open communication
environment is perceived (Bartels et al., 2007)
SOCIAL EXCHANGE THEORY (SET) AND
THE NORMS OF RECIPROCITY
PSYCHOLOGICAL CONTRACT

 “an individual’s beliefs regarding the terms and conditions of a reciprocal

exchange agreement between that focal person and another party”

 Unwritten mutual expectations for each side.

 A psychological contract is rather defined as a philosophy, not a formula or

devised plan

 Rousseau separates explicit tangible exchange based aspect of the psychological

contract from more trust or socio-emotional based aspects of the psychological
contract and apply this framework to the notion of employer branding.
 PSYCHOLOGICAL CONTRACT
Transactional Relational
➢ Involves more directly ➢ Refers to reciprocal
quid-pro-quo exchange promises among individuals
features. based on utmost trust and
implicit emotional
➢ These exchange aspects attachment.
are more based around
economic exchanges ➢ Exchanges are socio-
emotional oriented
➢ contract is unique to each
➢ Based on subjective
employee
perceptions of trust and
fairness
Ideological
➢ Built on a set of shared
values, mission, and/or
purpose the organization in
believed to strive for
➢ Credible commitments to
pursue a valued cause or
principle
➢ Fulfilment employees may
get from working toward a
particular ideological goal,
can act as a reward
Employer-Employee
Relations
 Reasons for this Unrest

• Wage increase and wage settlement

• Not allowing worker’s to form Union/union recognition
• Increase in contractual workforce
• Wage disparity between Permanent and Contract workers
• Long working hours
• Poor safety and welfare measures
• Sudden Layoffs and retrenchments
• Working Condition
• Higher expectations
Two Dominant Aspects of IR

Red-Hot Stove
Rule
Dunlop’s model identifies three key factors to be
considered in conducting an analysis of the management-
labor relationship:

1.Environmental or external economic, technological,

political, legal and social forces that impact employment
relationships.
2.Characteristics and interaction of the key actors in the
employment relationship: labor, management, and
government.
3.Rules that are derived from these interactions that
govern the employment relationship.
26-2

INTRODUCTION

The term ‘industrial relations’ refers to the collective

relations between employers and employees as a group.
It underscores the importance of compromise and
accommodation in place of conflict and controversy in
resolving disputes between labour and management.

“Industrial Relations,” the Industrial Labour Organisation

(ILO) has dealt with the relationships between the State on
one hand and the ‘employers and employees’ organisations
on the other or with the relationships among the
occupational organisations themselves.
26-4

Major factors influencing industrial

relations
Industrial relations are influenced by various factors viz., institutional
factors, economic factors and technological factors.
1. Institutional factors: These factors include government policy,
labour legislation, courts, collective agreements, employers’
federations, social institutions like community, caste, joint family,
system of beliefs, attitudes of workers, system of power, status, etc.
2. Economic factors: These factors include economic organisations, like
capitalist, communist, mixed, etc., the structure of labour force,
demand for and supply of labour force, etc..
3. Technological factors: These factors include mechanisation,
automation, rationalisation, computerisation etc.
26-5

Industrial relations: major influences

Government Rules,
Awards, Policies

Employer Employees

Industrial
Relations

Employers’ Trade Unions

Associations
Usages, customers, traditions within
a country
26-6

Objectives of industrial relations

❖ To Enhance the economic position of the worker

❖ Minimise conflicts and to the extent possible, avoid
conflicts and their negative consequences
❖ Allow workers to have a say in important decisions affecting
their lives
❖ Resolve knotty issues through consultation and negotiation
❖ Encourage and develop trade unions in order to improve
the workers’ collective strength
❖ Pave the way for industrial democracy.
 Need of Good IR

Enterprise Welfare

Higher Output
Development of Good
cordial relations &
Reduction in cost Employee Welfare
Effective
IR
Economic needs
Social needs
Psychological
needs