Title: MGT 674 Employee Relations Management
1MGT 674 Employee Relations Management
Ajaya Mishra
2Employee Relations
Session 4 Culture and Its Impact on Employee
Relations Unionization and Employment
Generations
3Culture
- 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.
4Corporate 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
5Hofstedes 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.
6- 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.
7- 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.
8World Average of Hofstedes Dimensions
9Comparison in USA and India
10Comparison Japan and Pakistan
11Other 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.
12- 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
13- 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
14Some 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.
15Socialization 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
16Culture 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
17Cultural 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 .
18Others .
- Social values
- Organization History
- Personal traits and orientation.
- Leadership style
- .
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19Characteristics 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
20- Unionization and Employment Creation
21Advantage and Disadvantage
Advantage Disadvantage
Increased wage / benefits Labor strikes
Job protection Limited Flexibility
Collective bargaining Higher production cost
Good working condition Low competitive capacity
22Factors Affecting Job Creation
- Economic Growth
- Industrial
- Service
- Agriculture
- Business Environment
- Social, Technical, Political, Legal
- Availability of Resources
- Power, Workforce, Raw Materials
23Occupational / 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
24- 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
25?