In The Name Of Allah The Most In The Name Of Allah The Most Beneficent And MercifulBeneficent And Merciful

CULTURAL COMPATIBILITY&

HUMAN RESOURCE PRACTICES

PRESENTERS

Zoya chaudhryIqra khanSidra GhazanfarFaizanKokab KhalidSher AfghanMudassir Khalid

CULTURAL COMPATIBILITY

ZOYA(MB-08-06)

CULTURE

“Culture is the customs and civilization of a particular people or group”

CULTURAL COMPATIBILITY

“It is the capability of different cultures to live together harmoniously.”

GLOBALIZATION

Globalization has resulted in significant implications for HR functions as they attempt to develop global HR strategies and design programs and processes to

manage a global workforce. The key to success is to balance global standardization and local autonomy.

ORGANIZATIONAL STRUCTURES

FOR

GLOBAL BUSINESS

1) Domestic exporter - heavy centralized activities in one country (financing, sales, marketing, human resources, strategic management) while sales are dispersed using agency agreements, and subsidiaries that are reliant on the home company

2) Multinational firm - control and management of finances out of central home base, while production, sales and marketing operations are in other countries. Products are made to fit local markets i.e. financial firms, General Motors etc

3) Franchisers - product is created, designed and financed in home country, but for product-specific reasons, there is a heavy reliance on foreign personnel for production, marketing, and human resources. i.e. McDonald's, KFC

4) Transnational firms - have no national home base, have several regional home bases, and optimize supply and demand constraints locally, central core for decision making, but dispersed power and financial power to the divisions. i.e. Citicorp, Sony, Ford

ORGANIZATIONAL EVOLUTIONARY DEVELOPMENT CURVE

GLOBAL MIND-SET MODEL

GLOBALLY ORIENTED CULTURES

1) ETHNOCENTRISM

Ethnocentric individuals interpret the world through the eyes of their own culture, not recognizing, even devaluing, cultures that are different from their own.

Ethnocentric can play an important role in preserving standards and uniformity across the global corporation

2) POLYCENTRISM Polycentric individuals adapt and assimilate to the values, attitudes and beliefs of another culture.

Polycentric individuals can play the role of empathetic “advisors,” effective at bridging the gap and transferring knowledge between the local environment and corporate.

The danger with the polycentric mindset is the tendency to “go native”, sometimes to the detriment of the organization’s objectives.

3) GEOCENTRISM Geocentric individuals believe there are certain cultural universals and commonalities in the world and that no culture is superior or inferior to another.

The geocentric mindset accepts the premise that bright people [do] bright things around the world

Also called “cosmopolitans,” these types of individuals focus on finding commonalities and spreading universal ideas and juggling the requirements of diverse places

GLOBAL MINDSET MODEL

DEVELOPMENTAL MODEL OF INTERCULTURAL

SENSITIVITY

Milton Bennett’s Model of Intercultural Sensitivity (1993) postulates a development progression that that all individuals go through as they develop into geocentric or cosmopolitans

As individuals mature globally, they move from the “ethnocentric” stages of denial, defense, and minimization to the “ethno relative” stages of acceptance, adaptation, and integration.

Other empirical work has demonstrated that the more international experiences individuals have, the less ethnocentric they become

Hence, associates who have reached the ethno relative stages of their individual development – those with geocentric mindsets – are vital for the new chaordic, Transnational HR organization to function effectively

IQRA(MB-08-12)

COLLECTIVISM

VS.

INDIVIDUALISM

COLLECTIVISM:

The Chinese culture is collective and of "high context."

Collectivism emphasizes group harmony and interdependence.

Chinese negotiators dislike taking the initiative and normally pay more attention to maintaining a harmonious relationship

In their decisions, more likely to consult their superiors motivation for favoring certain norms over others is

also driven by cultural factors Societal norms are known to reward those who

subscribe to them and punish those who deviate

Avoid open conflict, and when a conflict emerges, it must be resolved in inner circles before it becomes serious enough to justify public involvement

Use delaying tactics Use more obliging and avoiding conflict

resolution styles Maintain relations as key motivators in their

negotiation strategy

HR STRATEGIES FOR COLLECTIVISM

The North American culture is individualistic and of "low context”

Individualism emphasizes individual rights and independence.

American negotiators tend to be authoritative, autocratic and in a hurry to make a deal

Less decisive American executives emphasize personal

motivations (Self-Esteem, Position In Company)

INDIVIDUALISM:

Use less obliging and avoiding conflict resolution styles

Show more concern for goal achievement Individuals be responsible for all decisions by

themselves. Turning to superiors for instruction on ordinary

conflicts, particularly task-related conflicts could signal incompetence at one's level of responsibility

HR STRATEGIES FOR INDIVIDUALISM

FOUR ALTERNATIVES FOR A CROSS-BORDER

STRATEGY

LOCAL ADAPTATION:

1) International Strategy: Appropriate when there is little foreign business –

knowledge transfer from the center of headquarters.

Coordination costs are low.

2) Multinational Strategy: Affiliates are autonomous and local adapted. Cross-border advantages of standardization and

learning are low. Coordination-costs are lowest.

3) Global Strategy: Advantages of standardization of policies and

practices. Strong centralism. Lack of local responsiveness causes disadvantages. National segmented markets, cultures, policies set

barriers Coordination costs are high.

4) Transnational Strategy: Uses advantages from globalization, localization and

cross-border learning simultaneously. Coordination costs are highest

GLOBAL INTEGRATION:

HOFSTEDE’S MODEL OF CROSS-CULTURAL

DIFFERENCES

" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.“

Prof. Geert Hofstede

Geert Hofstede's model gives insight into other cultures so that international businesses can be more effective when interacting with people in other countries.

HOFSTEDE'S FIVE CULTURAL DIMENSIONS

1) Power Distance Index (PDI) : It is the extent to which the less powerful members of organizations accept and expect that power is distributed unequally

2) Individualism (IDV) : It is the degree to which individual is expected to look after himself

3) Masculinity (MAS): It is the degree to which women are assertive and competitive in any country

4) Uncertainty Avoidance Index (UAI ) : It indicates to what extent a culture makes its members to feel either uncomfortable or comfortable in unusual situations

5) Long-Term Orientation (LTO) : LT oriented cultures have the values of insistence & withholding while ST-oriented cultures respect their traditions, fulfill social duties and protect their own faces

HOME CULTURE (NORWAY) Vs. HOST CULTURE (PAKISTAN)

FAIZAN

(MB-08-33)

FAIZAN

TELENOR GROUP

• It ranks as world’s 7th largest mobile operator• More than 164 million mobile subscriptionsand operations in 13 countries

• The largest provider of TV services in theNordic region

• Organized into three business areas:– Mobile operations (13 countries)– Fixed-line (Nordic region)– Broadcast services (Nordic region)

BUSINESS AREAS

COMPANIES IN ALL BUSINESS AREAS PER COUNTRY

INDIA: NEW OPPORTUNITY

• On 29 October, 2008 Telenor has entered Indian market through a definitive agreement to subscribe to new shares in Unitech Wireless

• Subject to regulatory approvals, Telenor will hold a 60% controlling stake in Unitech Wireless

• Unitech Wireless plans to launch its services in mid 2009

TELENOR’S VISION

Telenor’s vision is simple:

“We're here to help”

It exists to help its customers get the full benefit of communication services in their daily lives.

CORE VALUES OF TELENOR

MAKE IT EASY for customers to get what they want, when they want it

BE RESPECTFUL of our customers and their local cultures

KEEP PROMISES about delivery, not over promising - actions not words

BE INSPIRING and strive to bring energy into the things we do

TELENORHUMAN CAPITAL

DIVISIONDEPARTMENT

SHER AFGHAN

(MB-08-75)

TELENOR BELIEVES

We believe that growth comes with sincere understanding of

People’s needs, in order to initiate changes

PEOPLE ARE TELENOR’S MOSTVALUABLE ASSET

Employed approximately 4 000 leaders – and a workforce on more than 36 000 man-years

Manages people and competence to ensure that the company fulfils its strategy

Is committed to creating a diverse organization (gender, ethnicity/nationality, age, disabilities)

Is responsible for high job satisfaction - opportunities for personal and professional development

Offers extensive opportunities for learning and development

VICE PRESIDENT

DIRECTOR

MANAGER

ASSISTANT MANAGER

EXECUTIVE

INTERNEES

HIERARCHY : TELENOR HUMAN CAPITAL DIVISION

TELENOR PAKISTAN

Telenor Pakistan launched its operations in March 2005

Telenor Pakistan is 100% owned by Telenor ASA

Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities.

It has a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets

ISLAMABAD HEAD OFFICE

MANAGEMENT:TELENOR PAKISTAN

VP HUMAN CAPITAL DIVISION TELENOR Mr. Nayab Baig

CEO TELENOR

Mr. Jon Eddy Abdullah

SIDRA(MB-08-16)

CULTURE&

HUMAN RESOURCE

CULTURAL COMPATIBILITY(AROUND THE GLOBE)

CULTURALLY COMPATIBLE

HR PRACTICES

ROUND THE

GLOBE

TELENOR “A SALAD BOWL”

NORWEGIAN BANGLADESHI

FIN

THAI

MALAYSIAN

PAKISTANI

HUNGARIAN

INDIAN

WELL-FIT PRACTICES FOR ALL CULTURES

1) There are no cabins in any Telenor centre. There is a central lobby where the front desk men to the Regional Officer (RO) all sit together.

2) There is a lot of respect given to all employees. Here the manager shakes hand with the mop. All the employees self-serve themselves. They are not allowed to make the service men work in their service

SELF-SERVICE

FREEDOM OF EXPRESSION

Telenor claims “ FREEDOM OF EXPRESSION

So, every person relating to any culture religion or believes is free to express

himself and pursue his values

Telenor has decided to serve halal food exclusively to their employees, on the Christmas celebration.

Telenor, which is the leading supplier of internet and telephony solutions in Norway, and deeply involved in foreign investments, has shown submission to Islam by deciding to serve halal food exclusively to their employees on their Christmas celebration.

HALAL FOOD

KOUKAB(MB-08-20)

CULTURALLY COMPATIBLE

HR PRACTICESIN

PAKISTAN

HAJJ POLICY FOR STAFF

Telenor do value the culture of its transnational bases

In Pakistan Telenor has the policy to send its 2 employees on Hajj every year

Free tickets to Hajj are drawn in a lucky draw

RAMZAN

Telenor arranges Aftar meal for its staff in Ramzan.

Telenor offices are being closed according to Ramzan timings

In non-Muslim countries, Muslim workers in Telenor are given prior permission to work according to Ramzan timings

DRESS

Telenor pursue cultural identities of their host countries in its events also

In the last annual meeting of Telenor, They decided sherwani as the dress code in Pakistan.

DRESS

Even in inter-province culture differences, the example of Quetta is interesting where employees aren’t asked to wear suits as a formal dress code. They wear shalwar kameez in offices

BELL

As a cultural symbol Pakistani Telenor offices have placed a big bell with a string on the main door of offices. It is for the purpose that any one who feels himself satisfied with Telenor can ring the bell. It is in coincidence with the practice of Late Mughal King Jahangir who used to listen to the petitions of his sub ordinates whoever has any complaint.

CONCLUSION

(MB-08-61)

MUDASSIR

CHALLENGES

Telenor face many challenges with the ever growing need of competent Human Resource.

It is really hard to hire and retain the best people especially around the globe.

The global companies face many challenges regarding the cultural identity of respective nations.

They have to adjust culturally to the environment of respective countries.

When hiring the HR staff of that very country, the organization is exposed to many challenges to make them perform at their best.

COMMENTS

Telenor is carrying out satisfactory culturally compatible strategies for its HR.

Although it is not promoting the “cultural identity” agenda that aggressively but even then it is facing much less cultural conflicts among its HR.

It may be due to the reason that it has divided itself in just two markets: Europe & Asia. The European market almost holds the same culture and three of its Asian market countries are Islamic.

Telenor is so far quite successful in hiring and retaining exceptionally talented HR worldwide.

Telenor has started a TELECOM MBAfor its leaders

WE VALUE CULTURAL

DIFFERENCES