9665_Can cultural awareness be seen as one of the core competencies in the IT multi-nationals

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“Can cultural awareness be seen as one of the core competencies in the IT
multi-nationals?”
Dublin Business School/Liverpool John Moores University
Jhalak Chirania
Stream: MBA in Human Resource Management
Student Number: 10025621
Word count: 19115
Supervisor: Claire Devlin
18th August 2014
[Dissertation submitted in part fulfilment of the requirement for the degree of master’s in
business administration (MBA) at Liverpool John Moores University in conjunction with
Dublin Business School] MBA in Human Resource Management
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Table of Contents
Introduction………………………………………………………………………………………………………………..9
1.1 Background ……………………………………………………………………………………………………..10
1.2. Research Area …………………………………………………………………………………………………10
1.3. Research Objective…………………………………………………………………………………………..10
1.4. Research Question……………………………………………………………………………………………11
1.5. Research Suitability………………………………………………………………………………………….11
1.6. Recipients of the research …………………………………………………………………………………11
Literature Review………………………………………………………………………………………………………12
2.1 Introduction……………………………………………………………………………………………………..13
2.2 Soft Skills in IT industry……………………………………………………………………………………14
2.3 Are soft-skills overrated? …………………………………………………………………………………..16
2.4 Cultural Awareness, a subset of soft skills……………………………………………………………17
2.4.1. Values and Identity…………………………………………………………………………………….18
2.4.2. Customs and rituals ……………………………………………………………………………………19
2.5 Models on Culture…………………………………………………………………………………………….20
2.5.1. Single dimension model ……………………………………………………………………………..21
2.5.2. Multi-dimensional models: Geert Hofstede’s work ………………………………………..22
2.5.3. Criticisms of Hofstede’s dimensions of National Cultures ………………………………26
2.6. Conclusions…………………………………………………………………………………………………….28
Chapter 3………………………………………………………………………………………………………………….29
Research Methodology ………………………………………………………………………………………………29
3.1 Introduction……………………………………………………………………………………………………..30
3.2 Research Question…………………………………………………………………………………………….30
3.3 Research Design……………………………………………………………………………………………….30
3.4 Research Philosophy …………………………………………………………………………………………32
3.5 Research Approach …………………………………………………………………………………………..32
3.6 Research Strategy……………………………………………………………………………………………..33
3.7 Time Horizon …………………………………………………………………………………………………..33
3.8 Sampling Methods and Selecting Respondents …………………………………………………….34
3.9 Research Ethics ………………………………………………………………………………………………..35
3.10 Data Collection Instruments……………………………………………………………………………..35
3.11 Data Analysis Procedures ………………………………………………………………………………..36
3.12 Limitations of Methodology …………………………………………………………………………….36
Data Collection and Analysis………………………………………………………………………………………38
4.1 Introduction……………………………………………………………………………………………………..39
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4.2. Collecting Qualitative Data……………………………………………………………………………….39
4.3 Analysing qualitative data………………………………………………………………………………….40
4.4 Advantages of working in a diverse team …………………………………………………………….41
4.4.1. Primary research………………………………………………………………………………………..41
4.4.2. Secondary research…………………………………………………………………………………….41
4.5 Challenges of working in a diverse team ……………………………………………………………..42
4.5.1. Primary Research……………………………………………………………………………………….42
4.5.2. Secondary research…………………………………………………………………………………….42
4.6. Did culture awareness and acknowledgement impact the performance of the
individuals working in multi-nationals?…………………………………………………………………….43
4.6.1. Primary research………………………………………………………………………………………..43
4.6.2. Secondary Research……………………………………………………………………………………44
4.7 Culture awareness being a part of soft-skills training…………………………………………….45
4.7.1 Primary Research………………………………………………………………………………………..45
4.7.2. Secondary Research……………………………………………………………………………………46
4.8 Conclusion……………………………………………………………………………………………………….47
Conclusion ……………………………………………………………………………………………………………….48
5.1 Research objective 1: Cultural Convergence or Divergence …………………………………..50
5.2 Research objective 2: At the top of the pyramid-CEO’S………………………………………..51
5.3 Research objective 3: Chief Human Resource Officer …………………………………………..51
5.4 Research objective 4: Suggestion for managers…………………………………………………….52
5.5 Research objective 5: Answering the research question …………………………………………53
5.6 Research Objective 6: Experience and maturity counts………………………………………….53
5.7 Inference………………………………………………………………………………………………………….54
Recommendations……………………………………………………………………………………………………..55
6.1. Outline of a Cross-Cultural Training Module………………………………………………………56
Limitations of the Research ………………………………………………………………………………………..58
7.1 Theoretical limitations……………………………………………………………………………………….59
7.2 Sample limitations…………………………………………………………………………………………….59
7.3 Counter effects of creating a ‘Culture Training’ Module ……………………………………….59
7.4 Inference………………………………………………………………………………………………………….60
Appendix………………………………………………………………………………………………………………….61
8.1 Reflection on Learning………………………………………………………………………………………62
8.1.1. Introduction ………………………………………………………………………………………………62
8.1.2. Learning styles…………………………………………………………………………………………..62
8.1.3. Action Research…………………………………………………………………………………………63
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8.1.4. Self-Appraisal……………………………………………………………………………………………63
8.1.5. Problem Solving ………………………………………………………………………………………..64
8.1.6. Summary of added values ………………………………………………………………………………65
8.1.7. Plan to apply sustain the learning…………………………………………………………………….65
8. 2 “Lunch is like the West and Dinner is like the East.”……………………………………………66
8.3. Sample Size…………………………………………………………………………………………………….66
8.4. Sampling methods……………………………………………………………………………………………67
8.5. Types of Interviews in a qualitative research……………………………………………………….67
8.6. Questionnaire ………………………………………………………………………………………………….68
8.7. Power Distance between U.S. and China…………………………………………………………….69
8.8. List of the interviews………………………………………………………………………………………..70
8.9 Timeline of the Research……………………………………………………………………………………71
Bibliography …………………………………………………………………………………………………………….72
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List of figures:
1. Stanford study survey result………………………………………………………………..14
2. Interaction of Culture and Behavior……………………………………………………….18
3. Onion model of Culture……………………………………………………………………19
4. Iceberg model on the ‘Levels of Culture’………………………………………………….21
5. Research Onion……………………………………………………………………………30
6. Qualitative data analysis…………………………………………………………………..39
7. Impact on the performance due to lack of cultural awareness…………………………….41
8. Culture training ratio………………………………………………………………………45
9. Conclusion chart…………………………………………………………………………..48
10. Three levels of uniqueness in mental programming……………………………………..49
11. Kolb’s learning styles……………………………………………………………………61
12. Action Research………………………………………………………………………….62
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List of Abbreviations:
HRM
Human Resource Management.
I.T
Information Technology.
PVP
Pace Volume Pitch.
KPI
Key Performance Indicator.
IQ
Intelligence Quotient.
EQ
Emotional Quotient.
CEO
Chief Executive Officer.
TCS
Tata Consultancy Services.
KPMG Klynveld Peat Marwick Goerdeler.
CQ
Cultural Quotient.
IBM
International Business Machines.
CIPD
Chartered Institute of Personnel and Development.
QDA
Qualitative Data Analysis.
HR
Human Resources.
HCL
Hindustan Computers Limited.
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Acknowledgement
I thank my research supervisor, Claire Devlin for her guidance and advice throughout this
dissertation process. Her support was greatly appreciated and helped add so much value to
the research.
I thank all the individuals who participated in the research surveys giving their time and
expertise. The contributions that were made proved to be very valuable in conducting this
research study.
I thank my friends and family. They were a great help to me during this process. The support
they provided was ongoing for which I am deeply grateful.
I would like to thank all my lecturers. The knowledge they have shared with me has enriched
both my knowledge and my life.
Finally, I am grateful to the lord for keeping me healthy and giving me this opportunity to
learn more.
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Abstract
Purpose: The purpose of this study is to find if cultural awareness can be seen as one of the
core competencies in the IT multinationals. The study intends to answer this question and
further offer a solution by recommending a culture training module as a part of the soft skills
training in the IT firms.
Research Design/Methodology: The research adopts a qualitative and cross sectional
approach based on a questionnaire. Since the nature of the research question is subjective, the
interviews conducted were semi structured and encouraged narration of incidents and
experiences.
Findings: This research found that having ‘culture awareness’ as part of the soft skills is
essential for an IT professional to succeed in the corporate world and lack of cultural
awareness would have an impact on their performance in the long run. In spite of the length
of academic literature and data available, there exist exceptions. It is difficult to have a
unanimous approval on a subjective topic. The number of years of work experience turned
out to be one of the most important factors that influenced the responses.
Research limitations: Study’s limitations are related to sampling and breadth of scope.
Although the research represents samples from different nationalities, gender, age,
designation and years of experience, the convenience sampling may impel reduced
level of details.
Practical implications: Organizations undertaking development initiatives are
encouraged to look further into the soft skills training programs and include
culture awareness module. Success depends not only on domain expertise in the
technical world, but also on such important elements as soft skills, contextual
awareness and cultural sensitivity.
Originality/Value: This paper begins with establishing the importance of soft
skills in the multinationals, and further researches if cultural awareness; which is a
subset of soft skills, can be one of the core competencies in these firms. The
contribution made by this research is the culture training module as a possible
solution.
Keywords: Training, soft skills, awareness, culture, leadership.
Paper type: Thesis research.
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Chapter 1
Introduction
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1.1 Background
Human resource management (HRM) is a compressive and coherent method to the
employment and development of people. However, Osterby and Coster criticized the concept
of referring people as resources and making them yet another aspect of production
(Armstrong, 2012, p.12). HRM was also called nothing but a synonym of ‘personnel
management’. Many authors criticized the concept of HRM. Some called it the old wine in a
new bottle and some framed it as emperor’s new clothes and so on. However the success and
outreach of the subject and its application cannot be ignored. It is a matter of fact that Human
Resource department has become a non-negotiable aspect of every big organization.
Considering the soft and the hard nature of HRM, it stands out clearly that to make the utmost
of any unit in the workforce, it needs to be monitored. Hence, it can be analyzed that HRM is
the right beginning to maximize the utilization of employees at work. Therefore, the focus of
this research will be on the soft skills of the employees. Throughout the research the effort is
to narrow down from a broader perspective, to one concept. This piece of work includes
describing, explaining, understanding, criticizing and analyzing (Ghauri and Gronhaug,
2005).
Organizational culture can be defined as “the collective programming of the mind that
distinguishes the members of one organization from others” (Hofstede, 2014). However, in
this research we will be focusing on the national culture which when represented by different
individuals in an organization forms the collective nature at work. The national culture is
defined as the “software of mind” that can influence people’s patterns of thinking and
behaving (Hofstede and Hofstede, 2005, p. 21). It is certain that every organization has its
own set of values but here we will be focusing on the culture that the several employees come
from. The similarities and the differences within them and the challenges that they face.
1.2. Research Area
Although culture is a topic that is essential in any industry, this study has been limited to the
Information Technology (IT) sector. The areas covered under this research include,
demonstrating the importance of soft skills training at workplaces, finding if cultural
differences can impact the performance of an individual. It concludes by recommending
cultural awareness as a part of the overall training that an employee in an IT company goes
through.
1.3. Research Objective
Saunders et al (2009) defines research objectives as clear, specific statements that identify
what the researcher wishes to accomplish as a result of doing the research. Objectives are
more generally acceptable to the research community as an evidence of the researcher’s clear
sense of purpose and direction (Saunders, Lewis and Thornhill, 2009, p. 123).
The study begins with an overall view on soft skills and their importance in the Information
Technology (IT) firms. It further proceeds to talk about one of the rare soft skills, that is,
cultural awareness. The research question is, ‘Can cultural awareness be seen as a core
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competency for people working in an IT multinational?’ The effort made is to find out the
effectiveness of the research question and to work out a solution.
1.4. Research Question
The main research question is to find, ‘Can cultural awareness be seen as a core competency
for people working in an IT multinational?’ However, in order to reach the core of the study,
several build up questions were framed as a part of the qualitative data collection exercise.
These included finding if cultural awareness or acknowledgement of the employee’s culture
impacted the performance outcome. This was asked because a skill can be a core competency
only when it contributes both to the growth of the individual and also the company. This is
the bottom line of strategic planning, where the objectives of the employees are in line with
those of the company.
1.5. Research Suitability
The researcher has prior experience of working in a non-profit organization doing a lot of
volunteer work. In such an organization working with different cultures can sometimes be
non-negotiable. Also, since the researcher’s domain was human resource management, this
subject was of particular interest and relevance too. After having completed all the modules
in the field of Human Resource Management, the researcher will use the learning experience
to proceed with the research.
1.6. Recipients of the research
This dissertation title is submitted as part of the curriculum of Masters in Business
Administration program at Dublin Business School in association with Liverpool John Moore
University. The principal recipient of this dissertation will be Dublin Business School and
Liverpool John Moore’s University. The primary recipient will be Ms. Claire Devlin.
As the research is mainly intended to perform a detailed study to understand the impact of
cultural awareness in the IT multinationals, many of the respondents interviewed have shown
an interest in the outcome of this research. A copy of the research results will be made
available to the respondents interested in the findings of the study.
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Chapter 2
Literature Review
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2.1 Introduction
The practices of Human Resource Management can be diverse in nature. As indicated by
Storey, one aspect of diversity is the distinction between the ‘hard’ and ‘soft’ version of
HRM (Price, 2007, p.7). Thus, under HRM one can adapt to either of the two techniques of
management, as per the values of the company. Looking back, Taylor and Henry Ford were
the two authors who introduced the hard aspect in the field of HRM. Taylor’s approach to
management was scientific, which was in simple words treating men as just another set of
resource. Such a harsh management style was opposed by a number of authors. This lead to
human relations movement which inspired the practices towards ‘soft’ people management.
On the similar grounds, author Elton Mayo was working on establishing that soft HRM is the
right way of managing people. He conducted an experiment on a sample trying to change the
brightness of the place. Surprisingly he discovered that even after reducing the brightness
below the average level, the productivity of the employees did not fall. On further
investigation, it was found that the social needs were much valued by the employees and that
made them undergo the challenge without affecting their performance (Price, 2007, p.
272).Therefore, with this background, the researcher tries to establish the need of ‘soft’
aspect of the business. For instance, ‘soft power’ a term coined by Harvard academic Joseph
Nye in 2004 states that in individuals, soft power rests on the skills of emotional intelligence,
vision and communication (Howard, 2011). Similarly, soft skills are proficiencies that
enhances the personal attributes of the employees which in turn helps in adding value to the
individual employees. Thereby helping in succeeding the cut throat competition by an extra
edge.
After gaining an overall view of the history of HRM and the foundation of ‘soft’ management
and trainings in the history of organizations, we move further to the core of the study. The
first half of the literature will establish the need for soft skills trainings in different industries
today. Whereas, the second half of the literature review will be focused on the study on
culture and its importance in the IT multinationals. This will revolve around the research
question in order to establish the traces in the literature about the topic of study.
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2.2 Soft Skills in IT industry
Success is one common entity that most of us are looking for. If a youth were to be asked,
whether they aim at succeeding at the job they are doing, the answer would be affirmative.
One of the essential criteria’s in succeeding in the world today, is having the right set of soft
skills. Daniel Goleman, a Psychologist, defines soft skills as ‘emotional intelligence’ in his
book of the same name (Goleman, 1995, p. 47). This is justifiable because research shows
that the use and possession of soft skills contributes more than technical skills or intelligence
to an individual’s success or failure, both in professional and personal life. Stanford research
institution conducted a research where they asked many young people what is it they thought
can bring them this much desired success (Crosbie, 2005, p. 42). What kind of skills would a
modern day global citizen need if he/she wanted to be successful? They got many answers,
and they then categorized these answers into primarily two slots. One set of skills on which
success seemed to be dependent was called ‘Domain Knowledge’ and the other set of skills on
which success seemed to be dependent was called ‘Soft-Skills’. To elaborate, Domain
Knowledge would include skills like academic/technical knowledge and Soft-Skills would
probably include a wide variety of skills like:
– Interpersonal Skills
– Team Building
– Communication Skills
– Time and Priority Management
– Decision making ability
– Stress Management ability
– Conflict solving
– Culture awareness/ Emotional intelligence
Anyone who observes real life closely enough would agree that for success you need both,
domain expertise and soft skills. The researchers did something interesting; they asked the
survey respondents in what proportion they thought these skills impacted success. So how
much percentage of their success would they attribute towards domain knowledge and how
much would they attribute towards soft skills. Turned out that most people said that almost
85% their success was dependent on soft skills and about 15% on domain knowledge
(Crosbie, 2005, p. 46). In other words, 80% of the samples believed that they were
unsuccessful not due to the lack of technical expertise but due to lack of ‘people’s skill’. The
industry selected for this research is the ‘Information Technology’ (IT) field. The reason for
selecting the IT sector is because there is a huge demand for the various technical skills and
an exponential growth of the resources in the industry. Due to this, the resources have
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become more centered towards developing only the technical skills and undervalue the soft
skills. This may hamper the success of the resources (Newell, 2002, p. 290). Looking at this
from a broader perspective, it could be said that the resources need an additional skill (Soft)
apart from the actual technical skills.
Figure 1: Stanford study result.
Most people out there now believe that if they want to be successful, they need soft skills
more than domain knowledge (Crosbie, 2005, p. 46). Therefore, without de-evaluating the
importance of domain and academic rigor, it definitely wakes up to the reality that times are
changing and the tools required to be successful are changing.
It is also striking that if we look at the typical education system, especially in developing
countries, it can be found that the practices and processes followed by the education system
are not in tune with the Stanford study, we just explored. In fact, the typical education system
in most countries places far more value on academic and domain knowledge than soft skills
(Leithwood and Seashore et al., 2004, p. 62). If a young students or professionals were to be
asked, how much, in terms of percentage of their time, effort and money, have they spent in
developing domain knowledge and how much in developing soft skills, the Stanford equation
of 85%-15% might actually be reversed. On taking India as an example, it was found that the
equation almost reversed. To make a point that almost all of the time, effort and money is
spent on developing domain knowledge and soft skills are majorly neglected. The study
revealed that although 46% students weighed soft skills more important, only 15% were
actually involved in any kind of extra-curricular activities. (Lay more stress on Soft Skills
than Domain Knowledge, Say Indian College Goers, 2014) India has a population of over one
85%
15%
Stanford Study – Survey result
“Success” attributing to ‘Soft Skills’
“Success” attributing to ‘Domain Skills’
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billion of which 50% are 25 years of age or younger (Indiaonlinepages.com, 2014). If this is
how we are preparing the young generations, it is doubted if we are preparing them at all for
real life success.
2.3 Are soft-skills overrated?
This could be a valid question to counter argue the information stated above. It could be said
that soft skills is an important factor for any employee to climb up the corporate ladder, but
the degree to which it is required and is essential, can be argued. It is not surprising that most
of the articles written in journals and studies conducted are in favor of the need for soft skills.
One could argue that in a technical field, having the expertise in domain work can help one
succeed on its own. However, there is no study or samples of the same. In fact, the studies
that started with a hypothesis of proving that soft skills is not as important also ended up
demonstrating counterproductive results (Morden, 2013). An article in the Forbes magazine,
written by Keld Jenson speaks on how actually, it is intelligence that is overrated. He
exclaims, that the intelligence quotient (IQ) level of the scientist Albert Einstein was
estimated to be 160, which is exceptionally high. However, it is questionable, with a regular
IQ level of 115, is it merely enough for us to survive the challenging career path? (Jensen,
2012). It is definite that IQ is a prerequisite, but on its own, a high IQ does not guarantee that
we can stand out and rise above our colleagues.
With this awareness, it can be said that soft skills is not an overrated phenomenon. It is
indeed the need of the hour. The efforts put by the several IT firms to make sure their new
employees possess such skills and the earlier ones are trained for the same, needs to be
acknowledged. To take the study of soft skills a step further, this research will be focused to
find out if cultural awareness; a subset of soft skill, can be seen as one of the core
competencies in the IT multinationals. Although soft skills is gaining credibility and
importance, it is debatable if ‘culture’, which is a subset of soft skill, is being imparted in the
soft skills training or not.
The researcher analyzed the literature to be accurate because it is such skills that build the
personality of an individual. A person with good soft skills and high level of empathy will not
only perform well at work but also excel in personal life. Such an employee is expected to be
highly social and have smooth relationships in professional and personal life (Bennett, 2004,
p. 65). Clear communication and ability to handle objections can be important key
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performance indicators (KPI). With these strengths and less stress in personal life, it is
complimentary to deliver better results at work. Therefore, by educating employees on these
interpersonal skills, the company is genuinely interested in the growth of the employees.
Companies are these days investing in training the employees on the non-tangible skill set
(Erickson, 2008, p.3). For all practical reasons, when an employee meets a client in an office
setup or otherwise, it is not just the domain knowledge being tested, however it is an overall
impression which plays an important role in getting a positive feedback (Nix, Eades and
Frost, 2013)
2.4 Cultural Awareness, a subset of soft skills
After having looked into the aspect of soft skills, let us now have a look at the core of this
study. From the pool of soft skills that were mentioned above, the focus will be on culture
awareness. We have often heard about the organizational culture, one needs to adapt to the
culture of the firm they work for. However, we are here speculating about the individual
cultures that the several employees come from. With this era of globalization and one world
family and tag lines like ‘global is local’ we need to check the fact weather is this truly
happening around? Under this section we will proceed with our research in the focused area
and learn more on culture training, the work of different authors and critical evaluation of the
same. The contemporary term Culture, is often used in daily life and is achieved from several
interconnected meanings. The origin of this word culture is found in the Latin language,
‘culture’ literally meaning cultivation or agriculture. However, in the 19th century much effort
has been put on the intellectual side of the cultivation, calling it culture. (Harper, 2012).
Considerable attentiveness has been sited on culture in organizations in the last two decades,
and it has never been as important in corporate terms as it is today. “Culture refers to the
cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings,
hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and
material objects and possessions acquired by a group of people in the course of generations
through individual and group striving” (Culture definition, 2014). As the world shrinks and
turns into a global village, culture becomes more and more important. Emotional intelligence
is no more a ‘nice-to-have’ soft skill, but has become a core competency, especially if one is
working across nationalities and communities (Jiang, 2011). It would be easily accepted,
without the shadow of a doubt, that people with high degrees of culture awareness would
have far better chances of success in a multi-national, multi-cultural work environment of
modern day corporate giants. It might be inaccurate to perceive that culture is same as
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nationality (Ibarra, 1996, p.7). In many countries of the world, especially the Asian countries,
within the same nationality one could have many cultures. Taking India as an example, there
are many different cultures that exist within the socio-cultural fabric of India. Of course there
is an overall ‘Indian Culture’, which can be a broad set of cultural values that would be
common to all Indians, but there are also many diverse and active cultures with their own set
of values and rules (Gregoire, 2013, p.4). Depending on the extent of involvement with the
nationals of a particular country, one might gauge the level of cultural intelligence needed for
global success.
Culture is a complex mix of many different attributes of human behavior. It can be analyzed
that there are two main components of culture; Values/Identity and Customs/Rituals.
Understanding culture: (Culture Matters Most, 2014).
2.4.1. Values and Identity
“Many values remain unconscious to those who hold them” (Geert Hofstede et al., 2010).
This is because values are learnt and established at an early stage in life, as stated by
Hofstede (2010) and Lewis (2006). Since these values are acquired so early it may seem like
they are inherited however, we just cease to register them. Values are actually learnt from
people around and situations one has been in. Certainly, individual’s behavior is affected by
both gifted human nature/personality traits and also by the influence of culture. “Individuals
express culture and its normative qualities through the values they hold about life and the
world; values in turn affect their attitudes about the form of behavior considered most
appropriate and effective in any situation; continually changing patterns of behavior
eventually influence the society’s culture” (Adler and Gundersen,2008). Therefore, the
process of cultural learning begins with the advancement of values, passed on from parents.
Moving further, the learning gradually shifts to more cognitive knowledge through practices
and atmosphere that an individual experiences (Lewis, 2006). Through such a growth process
one becomes a part of the society’s culture which is naturally passed on to the next
generation, causing the cycle to continue (Geert Hofstede et al., 2010).
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Figure 2: Interaction of Culture and Behavior.
2.4.2. Customs and rituals
Rituals “are collective activities, technically superfluous to reaching desired end, but which
within a culture are considered as socially essential” (Geert Hofstede et al., 2010). Such
rituals are responsible for reinforcing the relations with a culture. It is usually assumed that
culture is inborn; although we experience so many examples that when a kid is born in a
foreign country, he/it is more likely to behave like the culture of that country. Therefore, it
can be concluded that culture can be learnt, and is not simply inherited. “Culture derives from
one’s social environment rather than from one’s genes” (Greet Hofstede et al.., 2010, p.172).
This further rules the impact of customs and rituals of a country on the shaping of an
individual’s behavior due to the impact of culture. Culture comes in layers, like an onion and
in order to understand it we need to unpeel the layer one at a time. Geert Hofstede in the
Culture’s Consequences (2001) presented the “Onion” model of culture which denotes the
four core elements of culture which are connected to the fifth overall element that combines
the latter four. (Figure 3)
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Figure 3: Onion model of culture
Source: (Hofstede, 2001)
2.5 Models on Culture
In the past few decades, as development of worldwide communications through internet and
other resources, have made the world appear smaller. Also, with the ever growing number of
multi-national organizations, the influence of national culture and cultural differences has
attracted particular interest in managerial studies. This has inevitably made the workforce
diverse in nature and a lot of scholars have focused on national culture influences in
practical and theoretical world. The work of Hofstede clearly stated that it is impossible to
create a universal model, since the nature of culture is so subjective. Differences occur in
several cultures. Models of national culture established by Hofstede, Trompenaars,
Hampden-Turner and others deliver knowledge and involvement about national cultures.
These are prerequisite to inter-cultural acceptance and active adoption of management
practices in a multicultural atmosphere. Consequently, leading to successful performance
(Morden, 1999).
Broadly, the model on national culture can be divided under two headings: single
dimensions and multi dimensions models. As the name suggests, the single dimension
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model has only one variable whereas the multi-dimensional has more than one variable and
is more reliable. Authors like Hall, Lewis and Fukuyama are the ones who have worked on
the single dimension models. Whereas, authors such as Hofstede, Trompenaars, Hampden-
Turner, Lessem and Neubauer are a few who worked on the multi-dimensional piece of the
study (Morden, 1999).
2.5.1. Single dimension model
2.5.1.1 High and Low context cultures
Author Hall in the year 1977, identified the difference between the high and the low context
cultures. In high context cultures, the hierarchy level is highly respected and the individuals
depend on their seniors to receive instructions to do things in a particular manner (Morden,
1999). The decision is not usually taken solely by the individual. Whereas, in the low context
culture there is high level of independence and people use research and technical data to get
information (Hall, 1977). The decision making process is autonomous unlike above.
Therefore, national culture can be defined as the manner in which individuals seek
information and knowledge in order to make decisions (Morden, 1999). An example of a low
context nation would be U.S. and that of a high context would be Asian countries
(Wps.pearsoncustom.com, 2013).
2.5.1.2 Mono-chronic and Poly-chronic cultures
According to Lewis culture can be defined as mono-chronic and poly-chronic (Lewis, 2006).
As the name suggests, the mono-chronic culture rests on one thing at a given time and time is
a valued resource. On the other hand, poly-chronic culture, tends to accomplish several task
and usually in an unplanned way and without any time constraints (Morden, 1999). An
example of mono-chronic is possibly the European countries and that of poly-chronic could
be Asian countries (Rutledge, 2011).
2.5.1.3 Low and high trust cultures
Author Fukuyama (1995) considers cultures in relation to trust. According to his study, high
trust cultures exhibits flexibility, responsibility, delegation and “ability to spontaneously
generate strong groups” (Morden, 1999). On the contrary, low trust culture as the name
suggests, tend to isolate themselves in strong groups with own level of trust between distinct
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individual (Morden, 1999). An example of a low trust culture would be African countries and
that of high trust cultures consist of European countries.
Yet another example of single dimension cultural model is that of Edgar Schein’s (2010)
level of culture. It includes three levels of an upside down pyramid. This is often referred to
as an ‘iceberg’ model (See Figure 4). There exists three main levels under the same. First one
is the ‘Artifact’ and this is the top of the iceberg. These are visible organizational structures
and procedures. They are easily visible, like the behavior but difficult to interpret. The middle
of the iceberg consist of the ‘Espoused value’, which refers to the strategies, philosophies,
goals and values within a culture. This is the invisible and intangible aspect of culture and
hence is an underwater layer of the iceberg model. The final and the bottom layer of the
model is the ‘Basic assumption’. This refers to the unconscious and inherited behavior of the
culture. They form a core of the culture and guide the behavior. They are the ultimate source
of values and hence difficult to change. Although the Schein’s model on culture is mainly
used for organizational cultures, he uses this model to explore and define the concepts on
culture in general through his book, ‘Organizational culture and Leadership’. (Schein, 2010,
pp. 319-322).
Figure 4: Iceberg Model on the ‘Three Levels of Culture’
2.5.2. Multi-dimensional models: Geert Hofstede’s work
Although the study on culture in relation to workplace has been relatively new, the extent of
work covered by the pioneers of research is massive. The three famous researchers and
authors in the field of culture are Professor Geert Hofstede, Fons Trompenaars and Charles
Hampden. However, Bartels was the one of the few authors who wrote and explored culture
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in 1967. He was one of the first few to study the importance of culture (Bartel, 1967).Before
collecting and analyzing the data, it is important to note the different models on study of
culture and their practical use in the corporate world today. The behavior of the employees
which is influenced by the culture they come from, can be analyzed with the help of the
models on culture. This research is heavily influenced by the work of Professor Geert
Hofstede. He has been a role model and initiator of making culture one of the main pillars in
the organizations. The research that started in 1990 under professor Hofstede’s supervision
still endures. “Undoubtedly, the most significant cross-cultural study of work-related values
is the one carried out by Hofstede” (Bhagat and McQuaid, 1982). Nonetheless, his work was
criticized and quoted ‘incomplete’ by yet another author Trompenaars in late 1990’s
(Trompenaars and Hampden-Tuner, 2000, p.13) it can be said that the work done by Hofstede
is foundation base which created the essence of culture in a very early stage.
Culture, as Hofstede (1997, p. 4) states, is the “software of mind” that can influence people’s
patterns of thinking and behaving. Suggested ways to assimilate cultural competency:

Develop cultural relativism.

Demonstrate universal inclusiveness.

Learn to value cultural differences.

Expand one’s cultural intelligence. (CQ)

Devise culture training module for IT companies.
The study of the field began in earnest with the work of Hofstede with his landmark study of
IBM (Hofstede 1980). This particular piece of work is relevant to this research, because the
survey was done with the employees of IBM. Since the field chosen is the IT industry the
work of Hofstede will be supportive. Professor Hofstede devised a model to understand
culture under five categories. They are the following:
2.5.2.1 Individualism–collectivism
Individualism–collectivism defines the relationships individuals share in each culture. An
individualistic culture would be where one looks after oneself and sometimes the immediate
family too. Like U.S. has high individualism, for that matter any western country with a
culture of independence will be high on individualism. On the other hand is collectivism,
where an individual will belong to a group that has common objectives and looks after them.
This is a way of being loyal and exchanging favors. These groups are highly social in nature
and are interdependent too. As Geert Hofstede states in an interview, “You identify first with
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the group and secondly with yourself” (Hofstede, 2009).It also exhibits, unquestionable
loyalty towards the society. Any Asian country, especially Japan has high collectivism.
This can be related to the performance and the culture of the organizations. For instance,
employees who belong to collectivism national culture will be more team work oriented.
These people will perform well in a group. Whereas, the ones with high individualism are
better off with self-targets and one-one motivation. However, this can create a feeling of
competition with fellow employees. Within the IT industry, an employee with high
collectivism is better off but with high individualism will also not be harmful. The reason
being, the job profile of technical experts is desk oriented, however every job has some
amount of interaction level.
2.5.2.2 Uncertainty avoidance
Uncertainty avoidance refers to “The extent to which people feel threatened by uncertainty
and ambiguity and try to avoid these situations” ( Hofstede, 1991, p.113). This dimension
deals with the need for well-defined rules for prescribed behavior. It revolves around
predictability and a need for written and unwritten rules. It identifies the comfort level of
people about uncertainty of one’s future and mainly how these individuals handle risk (Geert
Hofstede, 2012). The book on cultures and organizations site several studies done on all the
four dimensions. One of which states a dislike for ambiguity and a requirement for precision
and formalization in the countries/companies with high uncertainty avoidance index (UAI).
Whereas, in companies with low-UAI, ambiguity and chaos are sometimes praised as
conditions for creativity and spontaneity (Hofstede and Hofstede, 2005, p. 183).
A study done on the top management in Britain, and other parts of Europe, unfolded an
interesting fact. It was found that in Britain top management occupied themselves more with
strategic issues and less with daily operations, whereas in France and Germany the reverse
was the case (Hofstede and Hofstede, 2005, p. 184). When this study was conducted by
Horovitz, the European economies were doing better than the British. Therefore, low UAI
causing more strategic planning does not compulsorily increase the productivity or
effectiveness. Also, it is worthy to note that stronger uncertainty avoidance does not
necessarily restrict creativity and the vice versa is equally true.
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2.5.2.3 Power distance
This dimension reflects the consequences of power inequality and authority relations in
society. It is a factor that influences hierarchy and dependence relationships in the family and
organizational contexts. It expresses the degree to which the difference in the distribution of
power is accepted in the society or an organization. Therefore, a society in which the power
distance is high, it will work comfortably in a hierarchical structure. However, if an
individual comes from a low power distance nation, it might be a struggle for these
individuals to fit in the company culture.
It is necessary to have a structure in place as the company keeps growing. With multinational
businesses it is mandatory to have uniformity and hence a hierarchal structure too. However,
this should not reflect in the behavior of the employees at different levels. In an article on the
Harvard blog, the author talks on her experience of working with a highly skilled employee in
the customer service, but was surprised to see her unusually uncomfortable in front of her
supervisor. The blog talks about how due to her cultural background, which is of a high
power distance country Indonesia, she is restricting herself and also her path to success. In an
IT firm a group of employees tend to work in closed projects (Sweetman, 2010). With a large
number of employees in these multinationals, it is important to keep the employees engaged
or connected with something common. It could be a goal, the owner with his unique vision or
the service itself. The approach of having the manager’s cabin door open and the fact that an
employee can walk into their seniors without any appointment shows efforts of making the
workplace more comfortable for employees from low power distance national cultures (Moss
Kanter, 2009).
2.5.2.4 Masculinity–femininity
“Masculinity and femininity identifies the sexuality of roles in the societies” (Morden, 1999)
and “preferences for achievement, heroism, assertiveness and material rewards in societies”
(Hofstede, 2012). Dominant values in masculine countries are achievement and success,
whereas in the feminine countries are caring for others and quality of life. Therefore,
organizations in masculine societies stress results, they reward people on the basis of equity,
which means better the performance higher the reward. However, organizations in feminine
country are more likely to award the individuals on the basis of equality. This means
everyone gets rewarded as per the need (Hofstede and Hofstede, 2005, p.143).
It is found that based on the cultural characteristics, the masculine and the feminine countries