HR must be properly trained to observe, analyze and overcome cultural differences. In this paper, an overview of culture and how it can be understood in the context of Human Resources management (HRM) is given. Starting off, a definition of the term “culture”, followed by briefly explained theoretical framework regarding culture theory by Geert Hofstede and Edgar Schein are presented. Those frameworks will help to understand the necessity of diversity management in form of training in HRM, where multiple examples are depicted. Two merger case studies – a failure and a success - of the automobile industry will then be analyzed to emphasize the importance of acknowledging cultural differences in the business world. To conclude this term paper, a summary of key facts regarding the significance of culture in the context of HRM is presented.
When hiring new employees, Human Resources (HR) has the duty to help employees to adapt to their new job and new environment. Depending on the employee, adapting can become harder, if the employee is confronted with cultural differences. The difference could be solely of organizational, but if the employee is e. g. from another country and/or continent, they could experience a culture shock, which would result in a decreased employee productivity, engagement and success, if not handled properly by HR.
Table of Contents
1 Introduction
2 Understanding Culture in the Context of HRM
2.1 Definition of Culture
2.2 Hofstede’s Dimensions of Organizational Culture
2.3 Schein’s Levels of Organizational Culture
3 Diversity Management
3.1 Definition of Diversity and Diversity Management
3.2 Key Components to manage Cultural Diversity
3.3 Training – Managing and valuing Diversity (MVD)
3.3.1 Attitude training - Raising cultural awareness
3.3.2 Skill training – nonverbal communication
3.4 Cultural Diversity in Cross-Border Mergers
4 Merger Case Studies
4.1 HRM - Managing Cultural Differences in Mergers and Acquisitions (M&A)
4.2 Daimler-Chrysler
4.3 Volkswagen-Skoda
5 Conclusion
Research Objectives and Main Themes
This thesis examines the vital role of cultural awareness and diversity management within the field of Human Resources (HRM), specifically focusing on how navigating cultural differences is essential for the sustainable success of international business operations and cross-border mergers.
- Theoretical foundations of organizational culture (Hofstede and Schein).
- Core components and measures for effective diversity management.
- The importance of specialized training in cultural awareness and nonverbal communication.
- Comparative analysis of merger success and failure through a cultural lens.
- Strategies for HR to mitigate cultural clashes in M&A processes.
Excerpt from the Book
3.3.2 Skill training – nonverbal communication
Only 35% of human communication is speech, the other 65% is nonverbal [Pae17]. This nonverbal communication is very different from culture to culture and therefore training is required to successfully manage diversity.
Nonverbal communication refers to:
x gestures,
x facial expressions,
x tone of voice,
x eye contact (or lack thereof),
x body language,
x posture.
To improve the cross-cultural communication skills of the employee, HR has developed distinct training to improve the understanding of nonverbal communication. It is hard to prove that a business deal has failed just because of the lack of awareness of nonverbal communication, but the aware of what message colleagues or customers are sending is from advantage. At the same time, it is essential to be aware of the possible impact of the messages the counterpart is receiving from us.
A good example for nonverbal communication is the Italian hand gesture. If not trained on this kind of body language, there is no chance to understand what the other person wants to “say”. These kinds of gestures are happening unconscious because they are strongly positioned in the everyday communication. In the same manner in other countries other forms of body language (not so obvious as the Italian) have been established. If, for instance, a same gesture has two meanings that can cause major confusion.
Summary of Chapters
1 Introduction: Provides an overview of the challenges cultural differences pose for HRM and sets the paper's focus. It introduces the key theoretical frameworks and the intent to analyze merger case studies to showcase the impact of cultural neglect.
2 Understanding Culture in the Context of HRM: Defines culture and organizational culture, presenting theoretical frameworks by Hofstede and Schein to help HR understand cultural layers and dimensions.
3 Diversity Management: Explores the definition and necessity of diversity management, emphasizing training in attitude and nonverbal communication to prepare for cross-border integration.
4 Merger Case Studies: Analyzes the failure of the Daimler-Chrysler merger against the success of Volkswagen-Skoda to demonstrate how cultural awareness or neglect determines M&A outcomes.
5 Conclusion: Summarizes that cultural awareness is a critical competency for HRM, concluding that failing to manage cultural differences properly can result in significant financial and operational losses for companies.
Keywords
Human Resources Management, Culture, Diversity Management, Organizational Culture, Hofstede, Schein, Cross-Border Mergers, M&A, Cultural Awareness, Nonverbal Communication, Daimler-Chrysler, Volkswagen-Skoda, Cultural Clash, Integration Plan, Globalization.
Frequently Asked Questions
What is the core focus of this project thesis?
This thesis examines the impact of cultural differences on human resources management, highlighting how cultural diversity in the workplace affects organizational performance and the success of cross-border mergers.
What are the central thematic areas discussed?
The work covers theoretical cultural frameworks, the importance of "Managing and Valuing Diversity" (MVD) training, specific nonverbal communication dynamics, and the practical application of HR strategies in M&A scenarios.
What is the primary objective of this research?
The objective is to underscore that HR must be trained to observe, analyze, and overcome cultural barriers to avoid failures in diverse environments, particularly during corporate mergers.
Which scientific methods are primarily utilized?
The approach combines a theoretical literature review of cultural frameworks (Hofstede, Schein) with a qualitative analysis of two specific automobile industry merger case studies as empirical evidence.
What topics are covered in the main section?
The main section details cultural dimensions, the iceberg model of culture, key components of diversity management, and provides a comparative analysis of the Daimler-Chrysler and Volkswagen-Skoda mergers.
Which keywords characterize this paper?
The key themes are Human Resources Management, Organizational Culture, Diversity Management, Cross-Border Mergers, and Cultural Awareness.
Why did the Daimler-Chrysler merger fail according to the author?
The author identifies cultural clashes, such as incompatible management styles, different decision-making paces, and friction regarding compensation and communication, as primary drivers of the merger's failure.
How did Volkswagen successfully manage the acquisition of Skoda?
Success was achieved by educating key leaders through mentoring, investing in training courses for staff on German engineering standards, and ensuring a collaborative integration process that respected the local organization.
- Arbeit zitieren
- Anonym (Autor:in), 2021, Understanding Cultural Differences in the Context of HRM. Intercultural Aspects and Diversity, München, GRIN Verlag, https://www.grin.com/document/1430343
