MGT 674 Employee Relations Management

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MGT 674 Employee Relations Management
Ajaya Mishra
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Employee Relations
Session 4 Culture and Its Impact on Employee
Relations Unionization and Employment
Generations
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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.

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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

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Hofstedes 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.

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• 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.

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• 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.

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World Average of Hofstedes Dimensions
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Comparison in USA and India
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Comparison Japan and Pakistan
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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.

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• 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

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• Achievement
• 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
• 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

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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.

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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
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Culture and ER
Cultural Dimensions Features Effect on ER
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
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Cultural Dimensions Features Effect on ER
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 .
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Others .

• Social values
• Organization History
• Personal traits and orientation.
• Leadership style
• .

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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

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• Unionization and Employment Creation

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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
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Factors Affecting Job Creation

• Economic Growth
• Industrial
• Service
• Agriculture
• Business Environment
• Social, Technical, Political, Legal
• Availability of Resources
• Power, Workforce, Raw Materials

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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

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• To ensure the safety and health of workers,
  managers establish a focus on safety that can
  include elements such as
• 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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