INTERNATIONAL HUMAN RESOURCE …

1 INTERNATIONAL HUMANRESOURCEMANAGEMENTFOURTH EDITIONANNE-WIL HARZING AND ASHLY H. PINNINGTON00_Harzing and Pinnington 39/23/2014 5:07:36 PMSAGE Publications Ltd1 Oliver s Yard 55 City RoadLondon EC1Y 1 SPSAGE Publications Teller RoadThousand Oaks, California 91320 SAGE Publications India Pvt LtdB 1/I 1 Mohan Cooperative Industrial AreaMathura RoadNew Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd3 Church Street#10-04 Samsung HubSingapore 049483 Editor: Kirsty SmyAssistant editor: Nina SmithProduction editor: Sarah CookeCopyeditor: Gemma MarrenProofreader: Lynda WatsonIndexer: Silvia BenvenutoMarketing manager: Alison BorgCover design: Lisa HarperTypeset by: C&M Digitals (P) Ltd, Chennai, IndiaPrinted and bound in Great Britain by Ashford Colour Press LtdEditorial Arrangement Ashly H. Pinnington and Anne-Wil Harzing 2015 Chapter 1 Laurence Romani 2015 Chapter 2 Chris Brewster and Wolfgang Mayrhofer 2015 Chapter 3 Tony Edwards 2015 Chapter 4 Chris Rowley, Jean Qi Wei and Malcolm Warner 2015 Chapter 5 B.

2 Sebastian Reiche and Anne-Wil Harzing 2015 Chapter 6 Damian Grimshaw, Jill Rubery and Phil Almond 2015 Chapter 7 Miguel Mart nez Lucio and Robert MacKenzie 2015 Chapter 8 Vladimir Pucik, Ingmar Bj rkman, Paul Evans and G nter K. Stahl 2015 Chapter 9 Ingmar Bj rkman, Paul Evans, Vladimir Pucik and Dana Minbaeva 2015 Chapter 10 Ashly H. Pinnington, Yaw A. Debrah and Christopher J. Rees 2015 Chapter 11 Chris Rowley, Alan Nankervis and Malcolm Warner 2015 Chapter 12 Arup Varma and Pawan S. Budhwar 2015 Chapter 13 K. Galen Kroeck and Mary Ann Von Glinow 2015 Chapter 14 Fang Lee Cooke 2015 Chapter 15 Fang Lee Cooke 2015 First edition published 1994 Second edition published 2003 Third edition published 2011 Fourth edition published 2015 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency.

3 Enquiries concerning reproduction outside those terms should be sent to the material on the accompanying website can be printed off and photocopied by the purchaser/user of the book. The web material itself may not be reproduced in its entirety for use by others without prior written permission from SAGE. The web material may not be distributed or sold separately from the book without the prior written permission of SAGE. Should anyone wish to use the materials from the website for conference purposes, they would require separate permission from of Congress Control Number: 2014933555 British Library Cataloguing in Publication dataA catalogue record for this book is available from the British LibraryISBN 978-1-4462-6730-1 ISBN 978-1-4462-6731-8 (pbk)At SAGE we take sustainability seriously. Most of our products are printed in the UK using FSC papers and boards.

4 When we print overseas we ensure sustainable papers are used as measured by the Egmont grading system. We undertake an annual audit to monitor our and Pinnington 49/23/2014 5:07:36 PMCulture and Cross-Cultural management 11 111 Culture and Cross- Cultural Management1 Laurence RomaniContents1. Introduction 122. Studies on culture in management 133. Positivist views: Culture and values 134. Interpretive views: Culture and meanings 215. Critical views: Culture and power 246. Summary and conclusions 26i. Discussion questions 27ii. Case study: Not the way we do business around here 28iii. Further reading 36iv. Internet resources 39v. Self-assessment questions 40vi. References 401 This chapter is part of the research project The hidden side of cross-cultural management , financed by the Swedish Research Council, Vetenskapsr det (412-2009-2020).

5 02_Harzing and Pinnington 4e_BAB1406B0111_Ch 01_Part 119/23/2014 5:07:50 PM12 Cultural, Comparative and Organizational Perspectives Learning objectivesAfter reading this chapter you will be able to: xUnderstand the validity of three different views on culture: positivist, interpretive and critical xExplain the major points of difference between these views. Present the different management knowledge developed by each view xAnalyse a situation using each of the three views xCombine each mode of analysis to reach an enriched understanding of culture and cross-cultural management in IHRMC hapter outlineThe chapter provides an analytical method useful for dealing with situations involving culture in IHRM. This analytical method derives from the combination of three views on culture, and the resulting knowledge they create.

6 Together, these views provide a rich understanding and, consequently, can be advantageous when dealing with cross-cultural IntroductionWhat is culture? A set of norms, beliefs and values shared by a group? Rather, is it how people make sense of the world around them? Or even a rhetorical device used by those in power to reproduce inequalities in organizations? In management research, Table The three views on culture and their related knowledgePositivist views: Culture and valuesInterpretive views: Culture and meaningsCritical views: Culture and powerx Researchers search for laws and regularitiesx Instrumental knowledge, predictions, development and test of modelsx Researchers search for meanings: how people make sense of their situationx Knowledge on sense-making and cognitive processes, on social constructionsx Researchers investigation reveals silenced voices and hidden structures of inequality and dominationx Knowledge that questions and challenges, exposing power relationships and inequalitiesExample: Cultural dimension constructs such as Power Distance or Assertiveness , value-dimensions valid across many countriesExample.

7 Meaning systems associated to notions such as leadership , job description or competence . Local and specific knowledgeExample: Talks about culture differences can be used to masquerade another issue (of power). Unveils structures of domination with local and specific examples02_Harzing and Pinnington 4e_BAB1406B0111_Ch 01_Part 129/23/2014 5:07:50 PM Culture and Cross-Cultural management 13views on what culture is, and its implications for management , differ strongly. The aim of this chapter is to present an analytical method for understanding IHRM situations involving culture. This method is based on the combination of three major views on culture used in cross-cultural management research. Combining these three views, and their respective forms of knowledge, develops a rich analysis which can be advanta-geous in IHRM when dealing with Studies on culture in managementStudies on culture and management are prolific and diverse.

8 It is a challenging task to gain a clear overview since one needs to take multiple research streams into consid-eration. Cross-cultural management encompasses studies from a variety of research literatures including comparative management (Redding, 1994; Child, 2000), cross-cultural management ( S derberg and Holden, 2002; Leung et al., 2005; Kirkman et al., 2006; Lowe et al., 2007; Tsui et al., 2007), INTERNATIONAL management ( Boyacigiller et al., 2004; Sackmann and Phillips, 2004) and cross-cultural psychology of organizational behaviour ( Gelfand et al., 2007). While many reviews of culture tend to consider only one of these streams of research, Primecz et al. (2009) and Romani et al. (forthcoming) offer a broad presentation considering major research paradigms.

9 By following a broad-based approach, this chapter addresses the diversity of studies in cross-cultural management and identifies three main viewpoints rooted in different research paradigms (see Romani, 2010a). The next three sections of this chapter briefly explain and discuss the positivist and then the interpretive and critical viewpoints on culture, cross-cultural management and Positivist views: Culture and values Within the positivist paradigm, the functionalist group of studies are the most prolific in cross-cultural management . In the functionalist approach, culture is seen as provid-ing answers to the basic needs that HUMAN beings have to fulfil and this is the foundation for what are known as cultural dimensions ( Hofstede, 1980). The idea is that there are distinct ways in which culture can fulfil these HUMAN needs, thus creating variations in the cultural dimensions.

10 These variations are linked to different values. For instance, HUMAN societies are compelled to deal with their environment (see Kluckhohn and Strodtbeck, 1961) and the different ways in which they can do this are claimed to be variations ( harmony, mastery or subjugation) within the cultural dimension Relation to broad environment (see, for example, Trompenaars, 1993; Maznevski et al., 2002). Each variation is embedded in a set of values, that people carry around in their heads , thus giving to positivist researchers the possibility of investigating culture through and Pinnington 4e_BAB1406B0111_Ch 01_Part 139/23/2014 5:07:50 PM14 Cultural, Comparative and Organizational Perspectives The functionalist approach substantially influenced seminal contributions by Hofstede (see Hofstede, 2001) and by Schwartz (1994), the works by Maznevski et al.