Cultural Differences Sweden v South Korea

PowerPoint Presentation

Erinn Singman KaineJenifer KesikSezai KayaZiqi Liu

MIND THE GAP

CCT Solutions Intercultural Global Consultancy26th November 20131

Contents

CCT BackgroundClient IntroductionProcess of Cross Cultural CompetenceSweden v South KoreaHofstede DimensionsIKEA v South KoreaCulture ShockChallengesRecommendations

2CCT SolutionsIntercultural Global ConsultancyCross cultural trainingDecode cultural differences Build cultural awarenessSet employees for a success in the new cultureRelocation Cultural awareness and business functions

3

Mid Thirties HR Director at IKEA Sweden Joined the company 4 years ago Promoted 2 times since then Anita Jnsson

4

5

GlobalTRANSITIONAL INTERNATIONAL Multi-domesticIntegrationHighLowLowHighLocal Responsiveness

MNE Business Strategy (Source: Adapted from Bartlett and Beamish 2010)6Ethnocentric PholycentricRegiocentricGeocentricPrevailing organisational cultureHome countryHost countryRegionalGlobalFinance Repatriation of profits to home countryRetention of profits In host countriesRedistribution within regionRedistribution globallyStrategyGlobal integrationNational responsivenessRegional integration and national responsiveness'Global integration national responsivenessMarketingProduct development determined mostly by the needs of home country customersLocal product development based on local needsStandarised within region but not across regionsGlobal products with local variationsPersonnel practicesPeople of home country developed for key positions everywhere in the worldPeople of local nationality developed for key positions within their own countryRegional people developed for key positions everywhere within the worldBest people everywhere developed for best positions everywhere in the world

Geocentric Approach(Source: Adapted from Chakravarthy and Perlmutter 1985)7Job Description Title: HR ManagerLocation: Gwangmyeong, South KoreaJob Type: 2 years assignment

Responsible for:Recruiting and selecting employees for a new storeLeading training and development programs for newemployeesDeveloping rewards system Management of subordinates in the HR department Developing and preserving organizational culture of IKEA in South Korean branch

8AcculturationHoneymoonDisintegrationReintegrationHome CountryDestination CountryHome CountryDisintegration(Source: Adapted from Adler 1975)Emotional well-beingHoneymoonNAcculturation1 mth2-3 mths2-3 mths1 mthAwareness of Culture Shock

9 Development of Cross-Cultural Competence

AwarenessIncreased awareness of ones own cultural perspectiveRespectAppreciate cultural differencesReconciliationResolve differences IntegrationAdaptationEducationExperienceReflectionOpennessFeedbackIncreasing transcultural competence(Source: Adapted from Briscoe et al. 2012)10Cultural Differences Sweden v South Korea

11Geert Hofstedes Cultural Dimensions

(Source: Adapted from Hofstede 2013)Power Distance Individualism v CollectivismMasculinity v Femininity Uncertainty Avoidance12Power Distance (PDI)The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

(Source: Adapted from Hofstede 2013)13Power Distance Differences LOW POWER DISTANCEHIGH POWER DISTANCEFlat organisational pyramid

- Hierarchal organisational pyramid- Authority is disliked, status is diminished - The employees with higher positions obtain special privileges and respect- Decentralised decision structure: Employees participate in decision making - Centralised decision structure: Decisions are made without the subordinates participation- Employees ideas/ initiative is encouraged- Employees ideas are not taken into consideration- Information is easily transferred top to down and vice versa- The flow of information between top and bottom is not efficient

(Source: Adapted from Hofstede 2013)14Individualism v Collectivism (IDV)

Describes whether a person functions primarily as an individual or within a group.(Source: Adapted from Hofstede 2013)15Individualism v Collectivism Differences

INDIVIDUALISMCOLLECTIVISM- Individuals prefer to take care of themselves and their family.- Close relationships with family and/or in other relationships.- One is expected to take responsibility for their own actions.- Loyalty is a fundamental characteristic in society; one takes responsibility for the actions of others.- Corporate management is the management of individuals.- Management is the management of groups within the company or organization.- Employee and employer relationships are based on a mutual advantage.- Employee and employer relationships are based on a moral connection.- With regard to work opportunities, hiring and promotions are primarily based on merit.- Hiring and promotions consider the employees in-group.- Guilt and loss of self-esteem.- Shame and loss of face.

(Source: Adapted fromHofstede 2013)16Femininity v Masculinity (MAS)

Masculinity represents the dominant male sex role pattern in the vast majority of both traditional and modern societies. (Source: Adapted from Hofstede 2013)

17Femininity v Masculinity Differences

FEMINITITY MASCULINITY- Dominant values include caring for others and quality of life- Directive style of management - Relationship orientated -Task orientated - Conflicts are resolved by negotiation - Solutions based on power - Work life balance is very important (People work for living)- Work is expected to take over the family life (People live to work)- Shorter working hours: typically 9am-6pm- Longer working hours: typically first to arrive and last to leave- Career is optional for both sexes- Career is optional for women

(Source: Hofstede 2013)18Uncertainty Avoidance (UAI)

The extent to which the members of a culture feel threatened by uncertain or unknown situations.

(Source: Hofstede 2013)19Uncertainty Avoidance Differences

MODERATE UNCERTATINTY AVOIDANCEHIGH UNCERTAINTY AVOIDANCE- Entrepreneurs are relatively free from rules - Entrepreneurs are constrained by existing rules- Strong belief in common sense- Strong belief in expertise- Working hard only if its necessary- Working hard- Tolerance for ambiguity and chaos- Need for precision and formalization- Motivation by achievement and esteem or belonging- Motivation by security and esteem or belonging

(Source: Adapted from Hofstede 2013)20"Maintaining a strong IKEA culture is one of the most crucial factors behind the continued success of the IKEA concept. -Ingvar Kamprad, founder of IKEA

The IKEA Way(Source: Adapted from IKEA 2013)

21

Swedish Character of IKEA

Over the years the unique IKEA culture and set of values have developed from our roots in Sweden (IKEA 2012, p.8)(Source: Adapted from IKEA 2012)22

Togetherness HumblenessEnthusiasm

23Active IHRM Strategy

ReceptiveACTIVE Autonomous IntegrationHighLowLowHighLocal Responsiveness(Source: Adapted from Briscoe et al. 2012)24

Impact on HR Management Selection and RecruitmentTraining and DevelopmentRewarding System

25Selection and Recruitment

Soft skills Culture fit

Qualification Clear job description

MIND THE GAP

How to attract and select the right people?

(Source: Adapted from IKEA 2013; Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider 2002)26

Rewarding System

Non-financial incentives: work- life balance, flexible working environment Nonfinancial incentives: Job securityBenefit reflects status Group based performance-related pay

MIND THE GAP

What is the best way in rewarding employees?How to measure the performance of staff in order to provide a fair reward ?

(Source: Adapted from IKEA 2013; Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider and Barsoux 2003)27

Training and Development

Paddle your own canoe I want your jobFormal instruction training Top down system Predictability and security in career planning

MIND THE GAP

How to pass on the IKEA culture?How to design effective training and development programs?

(Source: Adapted from IKEA 2013; Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider and Barsoux 2003)28Leadership and Management StyleUncertainty avoidancePower distance(Source: Hofstede et al. 2010; Browaeys 2008; Schneider and Barsoux 2003)MarketFamilyMachinePyramid

Informal, Open, CaringAuthority, Discipline, Order

Theory X ManagersTELL STYLETheory Y ManagersCONSULT STYLELOWHIGHLOWHIGH29

Leadership and Management Style

MIND THE GAP

How to delegate tasks? Are IKEAs informality and unconventional solutions going to work?

Should Anita reveal her mistakes?

30

31

Adjustments in Management PracticesPersonal Advice

(Source: Authors own)32Bridge the Gap- Management practices

(Source: Adopt from Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider and Barsoux 2003)33Bridge the Gap- Personal AdviceBE Patient BE AwareBE Knowledgeable

ENJOY!

34Thank YouTack

35

36Adler, P. S., 1975. The transitional experience: an alternative view of culture shock. Journal of humanistic psychology, 15 (4), 13-23. Bartlett, C. and Beamish, P., 2010. Transnational management: text, cases and readings in cross-border management. New York: Mc Graw- Hill. Briscoe, D., 2012. International human resource management: policies and practices for multinational enterprises. London: Rutledge.Brewster, C., 2007. International human resource management. 2nd edition. Chartered Institute of Personnel and Development.Browaeys, M. and Price, R., 2008. Understanding cross-cultural management. 1st edition. Harlow: Prentice Hall.Chakravarthy, B. and Perlmutter, H., 1985. Strategic planning for a global business. The Columbia journal of world business, 20 (2), 3-10.Hofstede, G., Hofstede, G. and Minkov, M., 2010. Cultures and organizations: software of the mind. New York : McGraw-Hill.Hofstede, G., 2013. Cultural insights - Geert Hofstede [online]. Available from: http://geert-hofstede.com. [Accessed 23 November 2013]. IKEA, 2012. IKEA group yearly summary [online]. Available from: http://www.ikea.com/ms/en_US/pdf/yearly_summary/ys_welcome_inside_2012.pdf [Accessed 20 November 2013]. IKEA, 2013. What is it like to work at IKEA? [online[. Available from: http://www.ikea.com/ms/en_US/the_ikea_story/working_at_ikea/ [Accessed 20 November 2013]. Jackson, T., 2002. International HRM: a cross-cultural approach. 1st edition. SAGE Publications Ltd.Kohls, L., 1979. Survival kit for overseas living. Yarmouth, ME: Intercultural Press. Mohammed, Y., and Chelliah, Y., 2010. Adjustment in international students in Malaysian public university. International journal of innovation: management and technology, 1(3), 275-278. Schneider, S. and Barsoux, J., 2003. Managing across cultures . 2nd edition. Harlow: Prentice Hall.

References 37Chart13169

SwedenSouth Korea

Sheet1SwedenSouth Korea3169To update the chart, enter data into this table. The data is automatically saved in the chart.

Chart17118

SwedenSouth Korea

Sheet1SwedenSouth Korea7118To update the chart, enter data into this table. The data is automatically saved in the chart.

Chart1539

SwedenSouth Korea

Sheet1SwedenSouth Korea539To update the chart, enter data into this table. The data is automatically saved in the chart.

Chart12985

SwedenSouth Korea

Sheet1SwedenSouth Korea2985To update the chart, enter data into this table. The data is automatically saved in the chart.