Instructions DUE 5/19/2020 BY 8PM EASTERN TIME For this assignment, you will write an essay that assesses the role of culture in human resource management practices within a global organization. Give

Keywords: Hofstede Model, Effectiveness Introduction S EVERAL STUDIES HAVE been conducted on culture and how it affects the per- formance, the working life and working conditions of the workers and eventually how it brings about effectiveness. Culture may be defined as the shared values, beliefs and norms in an organization. It is a process of sense making through communication and interaction. Depending on how strongly the values and control have been implemented in an organization, it may have a strong or weak culture. According to Schein culture is the most difficult to change attribute. The most important role that organization needs to play in order to have a strong culture is to adapt to the external environment and integrating individuals. Gareth Morgan describes culture as “an active living phenomenon through which people jointly creates and recreates the place they live in”. Positive organization culture increases staff alignment which in-turn increases organiza- tional effectiveness. Effectiveness may be achieved by strong strategic direction, increased employee productivity and high commitment. According to Avolio, organizational culture can increase commitment, productivity and profitability (1991). Therefore in some cases we can assume it may increase effectiveness. Effectiveness is therefore how affective an organization is in meeting its objectives or outcomes. It can also be described as the extent to which an organization is successful in achieving its desired future state. Other researchers define effectiveness as a measure of the match between stated goals and their achievement (Fraser, 1994). Effectiveness is doing the right things (Erlendsson 2002). When an organization tends to achieve its outcomes or desired The International Journal of Interdisciplinary Social Sciences Volume 6, Issue 1, 2011, http://www.SocialSciences-Journal.com, ISSN 1833-1882 © Common Ground, Amal Altaf, All Rights Reserved, Permissions:

[email protected] state it is said to be effective. As the competition for resources increases and survival becomes more important day-by-day organizations need to develop more effective processes and strategies not only to compete but also to survive. Considering the organizations there are several ways which help the organization achieve effectiveness. For example to be effective organizations may focus on performance, including both employees and organization as a whole. Organizations may also focus on strategies to adapt to change and new technologies in order to compete. They may also focus on external environment, internal relationships, employee’s needs, and leadership, depending on which area requires the most attention. All these factors collectively play a vital role in bringing about the effectiveness within any or- ganization. Factors affecting organizational effectiveness include environment, structure of the organization, strategy, culture, technology and human resources. The focus of this study is mainly on organizational culture. It describes the extent to which culture plays its part in bringing about the effectiveness required by any organization. Having a strong culture prevents conflicts among employees and managers. It makes sure that every employee is valued and shares the same direction as the organization. Several researchers have described different insights regarding organizational culture. The focus of this study is on Hofstede Cultural Model and how it can be applied to determine the organizational effectiveness. Hofstede’s cultural model is based on the study of cultural differences across national and regional sectors. Hofstede identified four dimensions of culture namely, power distance, masculin- ity/femininity, collectivism/individualism, and uncertainty avoidance. Power distance de- termines how any society handles unequal distribution of power. High power distance countries rely more on power holders and centralization of activities occurs. In organizations power distance occurs when subordinates are differentiated from their bosses with respect to salaries, status, promotions and benefits. Similarly lower power distance is decentralized and power is distributed equally. The second dimension is individualism vs. collectivism.

Individualism defines the extent to which people stress on” every man for himself”. It focuses on people concentrating on their own interests and likes to work individually, or only with the people they trust. Similarly collectivism is the opposite of individualism and it is based on alliance, which ensures trusts and protection. Collectivism in workplace is an example of team work, social interaction and integration. Third cultural dimension is masculinity vs.

femininity. This dimension stresses on the role distribution among the genders. The more the roles are equally distributed and equal opportunities are provided to both genders the more the culture is feminine and vice versa. The fourth cultural dimension of Hofstede cul- tural model is uncertainty avoidance. This dimension stresses on weak and strong culture.

People in weak culture dislike rules, have less formalized and standardized system and work only when needed. People in strong culture system like to be busy, have a formalized and standardized system, and believe time is money.

Two factors are the focus of this study; one is the organizational culture, based on the Hofstede cultural model and second is the organizational effectiveness with respect to that culture. The cultural focus is on distribution of power, gender wise role distribution, uncer- tainty avoidance and working individually or collectively. Several models exist to determine the organizational effectiveness. This study has adopted the general idea of Georgopoulos and Mann’s study on Community General Hospital and Basil S. Georgopoulos and Alexender Matejko study on American General Hospital as a Complex Social System, for determining effectiveness. In both the studies researchers measured effectiveness in terms of different dimensions which were based on the effectiveness 162 THE INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL SCIENCES itself. Questionnaires were developed, scores of which were used to compare result and de- termine the final results. A similar criterion is followed in this research and general organiz- ational effectiveness dimensions including innovation, commitment, strategy, and flexibility are used. These proxies will help measure effectiveness.

This study examines the “impact of four dimensions of Hofstede culture model on organ- izational effectiveness”.

Objectives of this Research The objectives of the study are as follows:

• To assess critically how the different dimension of culture relates with the organizational effectiveness.

• To find out the role of organizational culture to improve the effectiveness of the organ- ization.

Significance of the Study This study tries to fill the gap in the literature as there is very less work done on the Hofstede cultural dimensions in relation to the effectiveness of the organization. Moreover the study will reveal the importance of organizational culture to improve the performance and efficiency of the company to increase its effectiveness. This study will also help the institutions to foster the culture keeping in mind the organization and its people so that effectiveness can be achieved Scope of the Study The present study covers the different aspects of culture dimensions and how they relate with organization effectiveness possessing some culture that may be strong or weak. The study is important in the global environment to find out the means to help the human resource management examine the impact of culture on the effectiveness of the organization. This study falls in the area of management specifically culture and organizational effectiveness.

Literature Review Several researchers have conducted many studies and identified different dimensions of culture. One study by Hofstede 1980 identifies 5 dimensions of national culture. These in- cluded power distance, uncertainty avoidance, individualism, collectivism, masculinity and femininity. Further, Deal and Kennedy defined culture as how things get done. They measured organization is terms of risk, feedback, process, tough guy macho culture, work hard/ pay hard culture, bet your company culture. Charles Handy 1985 worked on Roher Harrison work on culture and popularized it as power culture, role culture, task culture and person culture. Edgar Schein defined organizational culture as shared assumptions that people learn while solving a problem that may include both external and internal integration and must be valid. Arthur F. Carmazzi 2007 identified, the blame culture, multi-directional culture, live and let live culture, brand congruent culture and leadership enriched culture. Robert A. Cooke defines culture as the behaviors that are required in order to convene the expectations of the 163 AMAL ALTAF organization. He identified three cultural dimensions which further has other norms included in them. He identified constructive culture, passive culture/ defensive culture, aggressive/ defensive culture.

Culture is described by how much the organizational culture is people oriented and team oriented (Quinn, 1988). Fairness, team-oriented, taking initiative, result oriented, achievement orientation, flexibility, action orientation, collaboration with others, aggressive factors have a great influence on organizational culture change (Hergunerand Reeves, 2000). Organizations have to adapt to change toward the organization of the participation, broader decision making, building teamwork, faster decision making and more idea factors (Denison, 2004). Greater attention needs to be paid to organizational culture along with structural explanations for managerial effectiveness (Parasuraman and Deshpande, 1984). Several models have been introduced for the study of effectiveness. Achieving effectiveness at organizational level is said to be organizational effectiveness (Cameron and Whetten, 1983; Quinn and Rohrburgh, 1983). It is also defined as extent to which organization achieves its goals (Georgopoulos and Mann, 1962). Effectiveness is also linked with control, inform- ation, management and goal setting (Quinn, 1998; Dension, Haaland and Geolzer, 2004).

Boerman and Bechger 1997 used organizational growth, interaction, evaluation by external factors, stability, and control and information system, commitment an educational planning for studying effectiveness. The four cultural traits in Dension model included, integration, coordination and goal setting importance. Measurement of organizational effectiveness has been the topic of interest of every scholar and researcher. Many researchers have identified different models for measuring the effectiveness, but the validity and reliability remains questioned. Many measures are not generalized therefore coming to a more standardized measurement remains a problem.

Hofstede Cultural Framework Hofstede put forth 4 cultural dimensions with respect to cultural studies conducted by 1980- 2000. His dimensions include power distance, masculinity vs. femininity, collectivism vs.

individualism and uncertainty avoidance described below:

Power Distance Power distance is the degree to which differences in power and status are accepted in a culture (Hofstede 1980a, 2001). Some nations accept high differences in power and authority between members of different social classes or occupational levels; other nations do not. For example, the French are relatively high in power distance, but Israelis and Swedes are very low. In Israel and Sweden, worker groups demand and have a great deal of power over work assign- ments and conditions of work (Adler 1997, Cole 1989). French managers tend not to interact socially with subordinates and do not expect to negotiate work assignments with them (Laurent 1986). In the low power distance countries, individuals feel less discomfort and stress when disagreeing with the boss. Based on that the following hypothesis was made:

H1: Power distant has a negative impact on organizational effectiveness 164 THE INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL SCIENCES Uncertainty Avoidance Societies high in uncertainty avoidance tend to prefer rules and to operate in predictable situations, as opposed to situations where the appropriate behaviors are not specified in ad- vance (Hofstede 1980a, 2001). In these societies, people are uncomfortable with high risk and ambiguity in other cultures, there is a greater tendency to take risks. In nations low in uncertainty avoidance such as the United States, there are fewer acceptances of rules and less conformity to the wishes of authority figures. The opposite is true in high uncertainty avoidance nations such as Germany and Japan (Brislin 1993). This desire to minimize uncer- tainty will be reflected in the level of performance risk that shows the decrease in organiza- tional effectiveness. Therefore, H2: Uncertainty avoidance has a negative impact on organizational effectiveness Masculinity The masculinity-femininity dimension of a culture refers to the degree to which values asso- ciated with stereotypes of masculinity (such as aggressiveness and dominance) and femininity (such as compassion, empathy, and emotional openness) is emphasized. High masculinity cultures such as Japan, Germany, and the United States tend to have more gender-differenti- ated occupational structures with certain jobs almost entirely assigned to women and others to men. There is also a stronger emphasis on achievement, growth, and challenge in jobs (Hofstede 1980a, b; 1998; 2001). In highly masculine cultures, people are also more assertive and show less concern for individual needs and feelings, more concern for job performance, and less concern for the quality of the working environment. In high masculinity cultures individuals tend to have higher achievement motivation and achievement is defined in terms of recognition and wealth (Hofstede 1980a, 2001). These cultures also admire the acquisition of material possessions and value aggressive attempts to acquire additional wealth or income (Gomez-Mejia and Welbourne 1991). However, in countries high on the feminine dimension, such as Sweden and Norway, working conditions, job satisfaction, and employee participation are emphasized. Therefore, H3: Masculinity has a negative impact on organizational effectiveness Collectivism vs. Individualism Individualism-collectivism refers to whether individual or collective action is the preferred way to deal with issues. In cultures oriented toward individuals such as the United States, the United Kingdom, and Canada-people tend to emphasize their individual needs, concerns, and interests over those of their group or organization. In individualistic cultures, individual initiative is encouraged (Hofstede 1980a, 2001). The opposite is true in countries high on collectivism, such as the Asian economies such as Japan and Taiwan. In a collectivist society, an individual is expected to interact with members of his or her group. It is almost impossible to perceive a person as an individual, rather than one whose identity comes from groups with which that person is associated (Brislin 1993). Certain work behaviors may also be af- fected. For example, in an individualistic society such as the United States, people tend to 165 AMAL ALTAF shirk when tasks are assigned to a group, as opposed to when tasks are assigned to individuals, a tendency not present in the collectivist country of Taiwan (Grabrenya et al. 1985). Finally, H4: Collectivism has a positive impact on organizational effectiveness Theoretical Framework Methodology The methodology has been as follows:

For the research work, primary data has been used. SPSS has been used for reliability analysis, regression and impact analysis.

The information has been collected directly from the managers, staff and other employees of different banks in Pakistan. Data collection was by Questionnaire and Surveys: This includes range of response questions, close ended questions, providing limited answers to specific responses or on a numeric scale. The sample size was 200 respondents from different banks. Only 123 responses were received and hence evaluated.

Results The most important thing in the results of the study was the reliability of the data used. To calculate that reliability analysis was used. According the results of 120 questionnaire analyzed the results have been found to be highly reliable. Table 1.1 shows the reliability of the questions asked with respect to Power distance in the organization. It shows that the reliability of the data is found to be 0.814.which is highly reliable.

166 THE INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL SCIENCES Table 1.1 Reliability Statistics N Cronbach’s Alpha Based on Standard- ized Items Cronbach’s Alpha of Items 5 0.814 0.814 Table 1.2 shows the reliability of the questionnaire asked with respect to uncertainty avoidance in an organization. It has found to be 0.877 making it highly reliable.

Table 1.2 Reliability Statistics N of Items Cronbach’s Alpha Based on Standardized Items Cronbach’s Alpha 5 .877 .876 Similarly Table 1.3 shows the reliability of the questions with respect to masculinity in the organization. It has found to be reliable with a cronbach’s alpha of 0.729.

Table 1.3 Reliability Statistics N of Items Cronbach’s Alpha Based on Standardized Items Cronbach’s Alpha 5 .729 .723 Table 1.4 shows the reliability of the questionnaire asked about collectivism in the organiz- ation. Results show it is reliable with the alpha of 0.793.

Table 1.4 Reliability Statistics N of Items Cronbach’s Alpha Based on Standardized Items Cronbach’s Alpha 4 .793 .785 Table 1.5 shows the reliability of organizational effectiveness data and it found to be 0.829.

Table 1.5 Reliability Statistics N of Items Cronbach’s Alpha Based on Standardized Items Cronbach’s Alpha 8 .829 .834 167 AMAL ALTAF Organizational Culture and Organizational Effectiveness A significant relationship has been found between organizational culture and organizational effectiveness. Therefore we have concluded that organizational culture does have an impact on bringing about organizational effectiveness.

According to both the tables of Model summary and Anova F change is higher than 3 and is significant. The relationship among the variables is also found to be highly significant with a value of 0.000. Model Summary b Change Statistics Std.

Adjusted RRModel R Square Square Error of the Sig. F Change df2df1 F Change R Square Estimate Change .00011547.372 .204 .59330 .176 .204 .452 a 1 b. Dependent Variable: Effectiveness ANOVA b Sig.

F Mean Square df Sum of Squares Model .000a 7.372 2.595 4 10.379 Regression 1 .352 115 40.480 Residual 119 50.859 Total a. Predictors: (Constant), Collectivism, Masculinity, Power Distant, Uncertainty Avoidance b. Dependent Variable: Effectiveness 168 THE INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL SCIENCES Coefficientsa Collinearity 95% Confidence Sig.t Standard- ized Unstandard- ized Model Statistics Interval for B Coefficients Coefficients VIF Toler- ance Up- per Lower Beta Std.

B BoundBound Error 2.485 0.6550.0013.398 0.462 1.57 (Constant) 1 1.072 0.933 0.239 0.0150.0272.244 0.193 0.057 0.127 Power Distant 1.254 0.797 0.316 -0.088 0.2671.115 0.104 0.102 0.114 Uncer- tainty Avoidance 1.034 0.967 0.113 -0.162 0.725 -0.353 -0.03 0.069 -0.024 Masculin- ity 1.288 0.777 0.543 0.19404.18 0.395 0.088 0.368 Collectiv- ism a. Dependent Variable: Effectiveness Hypothesis Testing According to the coefficients table the hypothesis results are determined as follow. H1: Power distance has a negative impact on organizational effectiveness According to the coefficient table significance of power distance is 0.027, which is signi- ficantly related dependent variable-organizational effectiveness. T value for power distance is found to be 2.244 which is higher than 1.96. According to results H1 is accepted.

H2: Uncertainty avoidance has a negative impact on organizational effectiveness Insignificant relationship has been found between uncertainty avoidance and organizational effectiveness. According to these results it has been found that this dimension does not have any direct impact on organizational effectiveness. Therefore, H2 is rejected. High uncertainty avoidance according to theory and research has found to be positively related to organiza- tional performance factors. Therefore, the measurement and hypothesis is rejected as high power distance may not be negatively impacting organizational effectiveness.

H3: Masculinity has a negative impact on organizational effectiveness 169 AMAL ALTAF According to the statistical data masculinity is found to be negatively and insignificantly impacting organizational effectiveness. This means that masculinity is not found to be im- pacting the dependent variable and therefore, H3 is rejected.

H4: Collectivism has a positive impact on organizational effectiveness According to the coefficient table significance level of collectivism is high and t-value is found to be 4.180. H4 is accepted. Therefore it is found that collectivism is related to organ- izational effectiveness.

Conclusions and Disscussions Organizational culture has been the focus of many researchers and management theories over the years, many cultural models and dimensions have been introduced by several re- searchers which play a vital role in not only determining organizational performance but also several other factors including effectiveness, turnover, absenteeism, employee develop- ment, and cultural focus itself. The main idea generated and implied with this research was the use of Hofstede Cultural Model in determining Organizational Effectiveness. Over the years several studies have been conducted using Hofstede Cultural model to study the changes in culture or differences in culture across regions or countries. Little research is available or is done based on using these dimensions to determine other factors which influence the or- ganizations overall performance. Competition is very important in this era. If you cannot compete, you cannot win. Changes and flexibility both are important while conducting or- ganizational affairs. As people are the main source of achievement for any organization, therefore cultural criteria and norms have a severe impact, good or bad, on organizations operations. According to the research conducted Using Hofstede Cultural Model, two factors have been found to be significantly related to organizational effectiveness. Power distance and collectivism both have been found to affect effectiveness. Power distance according to the study was based on low power distance. According to several researches conducting by Hofstede 2001 and other researchers power distance was either found to be low or high. The higher the power distance the more it is difficult to coordinate and motivate people. Assigning authority may decentralize the hierarchy and it does help the organization to reduce its problems, such as coordinating, communication and integration. Similarly working collect- ively and in teams is more of the trend in today’s era. The organizations now focus on job rotating, integrating and assigning different jobs to employees. The more the team work and socialization in an organization, the more employees feel valued and part of the organization.

This helps them feel they own a piece of the organization and try to achieve organizational goals, as they become their own goals. Inequality in anything is always undesirable. People like to be treated with respect and equality in organizations too. In high power distance organizations higher level usually sustain power and lower level is dependent on every decision of the higher level. Such au- thority distribution not only results in de-motivation, it is also the sole cause of lack of cre- ativity, unresponsiveness to new issues and lack of opportunity to enhance competencies.

Therefore, proper distribution of authority would provide the organizations with more competences and skill development, which in result will help organizations compete. Simil- arly, working collectively and for the welfare of the whole group may also help the organiz- 170 THE INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL SCIENCES ation achieve employee’s loyalty and acceptance. The more the organization and its people care for each other the more there are positive impacts. The more the people feel lack of care, politics and leg pulling phenomenon within an organization the more the organization is individualistic and everyone focuses on their own benefits. Focusing on personal benefits may help only the individual working in the organization to achieve his goals and his personal needs. The basic success of every organization is committing to organizational goals and doing everything to achieve those. Without that the individuals may achieve their interest but it will be at the stake of the organization.

Recommendations In high power distance organizations those in authority openly demonstrate their rank. Sub- ordinates are highly dependent on higher level management. Employees do not have close or friendly relationships with top management. Politics is commonly practiced and subordin- ates are usually blamed for things that go wrong. Therefore, if any organization would want to be successful a low power distance authority relationship would be successful. Practicing friendly relations, giving authority to employees to make on spot decisions and respecting and trusting each other are part of low power distance. In such an environment subordinates are trusted with projects and equality is more often practiced. To a similar extent this research also recommends the practice of low power.

Similarly practicing a friendly and caring action is always best. Developing a culture which focuses on every employee, rather than on a single employee is based on collectivism.

The research also shows a significant impact it has on organizational effectiveness. Having a family- like culture and managing the needs of employees makes sure they feel they are part of the organization. Organization can also opt for either masculinity or femininity culture.

Based on the facts if organizations need is more towards a logical approach, or towards achievement, profits, and ambition it may use masculine culture. On the contrary feminine culture is based on innovation, creativity, relationships, compromise and care. To achieve effectiveness in the current era flexibility and innovation are more important than logic and ambitions. Environment is changing, globalization is happening, things are changing with the passage of time. With these changes organizations need to develop a system which can work along the change rather than remaining stable. To achieve this, a feminine culture may be appropriate. Similarly avoiding situations that cause worries and anxiety is based on strong uncertainty avoidance. This fact is also similar to maintaining a flexible culture, which may adapt to changes occurring in the environment easily. Uncertainty can result in several issues. It is important to face these issues in a way that is successful. Failing to do so may lead organizations to fail and liquidate.

Further Suggestions As the research is based on Hofstede Cultural Model, suggestions to use this model for achieving effectiveness have been made. Several other models and ideas exist in order to achieve effectiveness like differentiation, centralization and standardization. As theory and research suggest a balance among those to achieve effectiveness, this research suggests a similar recommendation. One might not need to completely or separately use the dimensions on its own, for example, power distance in certain conditions may be high or may be low, 171 AMAL ALTAF therefore an organization can adjust its power and authority distribution according to its system and its requirements. Where lower level requires low authority and control one can practice accordingly and top management can sustain high power, similarly, where more authority is required power can be distributed equally and low power distance can be main- tained. It is also important that power given to any individual may be monitored to make sure no misuse occurs. Similarly a balance of individualism and collectivism is suggested.

If an organization needs employees to compete and achieve targets they may choose an in- dividualistic culture. This will help the employees compete with one another, develop skills and knowledge, and perform better. Similarly if a group or team work is required to work together one may practice a collectivism culture. Providing the employees a sense of belonging and family helps achieve these factors. The end results are usually successful. Further accord- ing to organizational departments and type or system it can maintain a balance between masculinity and femininity. If the production department requires innovation and creativity to compete and satisfy customers and more flexible and feminine culture may be adopted.

Similarly if an organization main focus is on profits, ambitions, achievements, assertiveness then a more masculine culture can be followed. Lastly, an organization may also work ac- cording to uncertain situations. Usually it is important to behave according to the situation.

For example it may happen that in a strong uncertainty avoidance culture, unknown situations may cause anxiety and fear. This anxiety may lead to emotional disturbance. In an organiz- ation people get into stress when they feel pressured by time and uncertainty to accomplish a target or to solve a problem. This may help them achieve targets on time or take decisions on spot. As it is said, some people work better under pressure, therefore uncertainty may prove a better option for them. Similar to that if low uncertainty avoidance exists, in such situations people tend to remain calm and take necessary steps as required. For both the situations there may be a benefit or a disadvantage, but based on what is required an organ- ization can maintain a balance and act accordingly in order to succeed.

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Currently in the final semester of my Mphil and looking forward to do Phd from America or UK.

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