Transcript Employment Relations

MGT 674
Employee Relations
Management
Ajaya Mishra
Employee Relations
Session 4
Culture and It’s Impact on Employee Relations …
Unionization and Employment Generations …
Culture …
 … an integrated pattern of human knowledge, belief,
and behavior that depends upon the capacity for
symbolic thought and social learning.
 … the set of shared attitudes, values, goals, and
practices that characterizes an institution,
organization, or group.
Corporate Culture …
 “...A group or organizational-level of shared beliefs
and values that lead to norms and expectations for
members of that culture.
 It is the “glue” that holds an organization together
through shared assumptions, beliefs, and processes.
In short, it speaks to ‘how things are done here’
Hofstede’s Cultural Dimensions …
 Power Distance Index (PDI) that is the extent to which the less powerful
members of organizations and institutions accept and expect that power is
distributed unequally. This represents inequality, but defined from below, not
from above. It suggests that a society's level of inequality is endorsed by the
followers as much as by the leaders.
 Individualism (IDV) on the one side versus its opposite, collectivism, that
is the degree to which individuals are integrated into groups. On the
individualist side societies in which the ties between individuals are loose:
everyone is expected to look after him/herself and his/her immediate family.
On the collectivist side, societies in which people from birth onwards are
integrated into strong, cohesive in-groups, often extended families which
continue protecting them in exchange for unquestioning loyalty.
 Masculinity (MAS) versus its opposite, femininity, refers to the
distribution of roles between the genders which is another fundamental issue
for any society. The IBM studies revealed that (a) women's values differ less
among societies than men's values; (b) men's values from one country to
another contain a dimension from very assertive and competitive and
maximally different from women's values on the one side, to modest and
caring and similar to women's values on the other.
 Uncertainty Avoidance Index (UAI) deals with a society's tolerance for
uncertainty and ambiguity. It indicates to what extent a culture programs its
members to feel either uncomfortable or comfortable in unstructured
situations. People in uncertainty avoiding countries are more emotional, and
motivated by inner nervous energy. The opposite type, uncertainty accepting
cultures, are more tolerant of opinions different from what they are used to.
People within these cultures are more phlegmatic and contemplative, and not
expected by their environment to express emotions.
 Long-Term Orientation (LTO) versus short-term
orientation: Values associated with Long Term Orientation are
thrift and perseverance; values associated with Short Term
Orientation are respect for tradition, fulfilling social obligations,
and protecting one's 'face'. Both the positively and the
negatively rated values of this dimension are found in the
teachings of Confucius, the most influential Chinese philosopher
who lived around 500 B.C.; however, the dimension also applies
to countries without a Confucian heritage.
World Average of Hofstede’s Dimensions…
Comparison in USA and India
Comparison Japan and Pakistan
Other Cultural Dimensions …
High Performance
… a 'high performance culture' exists when everyone in the
organization shares the same vision and where they trust and
value each other's contribution.
Constructive
… a constructive culture is defined simplistically as one oriented
towards achievement, self-actualization, creativity,
participation, valuing people, and one that places a high priority
on healthy relationships between people.
 Power
 Based on strength, justice, benevolence.
 Depends on acceptance of hierarchy and inequality between
people as legitimate
 Can degenerate into intrigue, politics and back-stabbing
 Structure
 Provides stability, justice and efficiency.
 Impersonal, Assumes people are not trusted
 Achievement
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People aligned to the vision / purpose of company
Self-supervision, High morale, teamwork, energy.
Values larger than profit or growth
Can lead to arrogance, elitism, lack of cooperation
 Support
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Foster warmth and caring
Open and lots of communication helps in greater understanding
People are not judgmental about each other
Values harmony and avoids confrontation
Some other Clustures of Culture …
 Bureaucratic Culture
 Formality, rules, standard operating procedures, hierarchy.
 Clan Culture
 Tradition, loyalty, personal commitment, high level of
socialization, self management, social influence
 Entrepreneurial Culture
 High risk taking, creativity.
 Market Culture
 Demanding goals like sales, profitability, market share.
Socialization steps for shaping culture …
Role Model to sustain
the Culture
Rituals, and Stories to
reinforce the Culture
Adoption of Cultural
Values
Removal who deviate
from culture
Reward to sustain the
culture
Training for developing
culture
Challenging Early
Assignments
Careful Selection
Removal who do not fit
the Culture
Culture and ER
Cultural Dimensions
Features
Power Distance: High
or Low
Inequality, Bossism, Lack
of Open Communication
Individualistic /
Collective
Selfishness
Group Cohesion.
Masculinity / Femininity
Aggression, High PD
Caring and Nurturing
Uncertainty Avoidance
High tolerance / patience
Low tolerance / patience
Long term / Short term
Orientation
Respect , tradition/ value
Opportunity…
Effect on ER
Cultural Dimensions
Features
Power
Strength, justice,
acceptability
Structure
Stability, justice,
efficiency
Achievement
Aligned to vision, self
supervisory, team work,
high morale.
Support
Warmth and caring, open
communication, values
harmony .
Effect on ER
Others ….
 Social values
 Organization History
 Personal traits and orientation.
 Leadership style
 …….
 ……
Characteristics of Nepali Management Culture
 value of non-assertiveness
 value of respect for seniors/elderly people
 value of loyalty, respect for authority & hierarchy
 value of collectivism
 value of harmony
 value of preserving face
 value of trust and relationship building
 value of tolerance and respect for differences
UNIONIZATION AND EMPLOYMENT
CREATION …
Advantage and Disadvantage …
Advantage
Disadvantage
Increased wage / benefits
Labor strikes
Job protection
Limited Flexibility
Collective bargaining
Higher production cost
Good working condition
Low competitive capacity
Factors Affecting Job Creation …
 Economic Growth
 Industrial
 Service
 Agriculture
 Business Environment
 Social, Technical, Political, Legal
 Availability of Resources
 Power, Workforce, Raw Materials …
Occupational / Workplace Safety …
 Occupational health and safety is a cross-
disciplinary area concerned with protecting the
safety, health and welfare of people engaged in work
or employment. The goal of all occupational health
and safety programs is to foster a safe work
environment
 To ensure the safety and health of workers, managers establish a
focus on safety that can include elements such as:
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management leadership and commitment
employee engagement
accountability
safety programs, policies, and plans
safety processes, procedures, and practices
safety goals and objectives
safety inspections for workplace hazards
safety program audits
hazard identification and control
safety committees to promote employee involvement
safety education and training
safety communications to maintain a high level of awareness on safety
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