Unit 2: Shifts in culture & comparing cultures
Cross Cultural Human Resource Management notes · PTU syllabus (BBA-632)
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Unit summary
Cultures are not frozen — they shift with economic change and foreign influence. This unit covers the significance of cultural shift, the influence of economic factors and foreign intervention on culture, cultural and behavioural differences across countries, and the two most used frameworks for comparing cultures — Hofstede's dimensions and the GLOBE study.
After this unit you can
- Explain cultural shift and its significance
- Explain the influence of economic factors and foreign intervention on culture
- Compare cultural and behavioural differences across countries
- Apply Hofstede's and GLOBE models to compare cultures
PTU syllabus topics
- Significance of cultural shift
- influence of economic factors and foreign intervention
- cultural and behavioural differences across countries
- Hofstede and GLOBE models for comparing culture
Power distance
Acceptance of unequal power
Individualism vs collectivism
Me or we
Masculinity vs femininity
Achievement or caring
Uncertainty avoidance
Comfort with ambiguity
Long-term orientation
Future vs tradition
Indulgence vs restraint
Gratification of desires
Topic 1
Significance of cultural shift
Cultural shift is a change in the values, beliefs and behaviours of a society over time.
- Changes consumer demand and lifestyle (fast food, online shopping, gig work in India).
- Changes workforce expectations — younger employees want flexibility, purpose, quick growth and feedback.
- Requires organisations to update HR policies, leadership styles and products.
- Organisations that ignore shifts lose talent and market share.
- 1
Economic development
- 2
Technology and media
- 3
Education
- 4
Urbanisation and migration
- 5
Globalisation and foreign influence
- 6
Generational change
Topic 2
Influence of economic factors
- Rising incomes: shift from survival values to self-expression values (Inglehart's World Values Survey).
- Industrialisation and urbanisation: joint families give way to nuclear families; greater individualism.
- Women's workforce participation: changes gender roles and family structure.
- Service economy and IT boom: global work hours, Western corporate practices adopted in Indian firms.
- Consumerism: brands, credit and EMI culture replace a saving culture.
Example
India's IT sector introduced flat hierarchies, first-name culture and flexible work into Indian workplaces — a shift from traditional respect-for-seniority norms.
Topic 3
Influence of foreign intervention
- Colonialism: English language, legal and education systems in India.
- Multinational corporations: bring HR practices, work culture and consumption patterns.
- Media and the internet: Hollywood, OTT, social media spread global lifestyles.
- Foreign aid and international institutions: conditions that change governance norms.
- Tourism and diaspora: returning NRIs bring new ideas.
- Reactions: cultural homogenisation (McDonaldisation), hybridisation (glocalisation), or resistance (revival of local identity).
Topic 4
Cultural and behavioural differences across countries
| Aspect | Example contrasts |
|---|---|
| Greeting | Handshake (USA), bow (Japan), namaste (India), cheek kiss (France) |
| Punctuality | Strict (Germany, Switzerland) vs flexible (India, Brazil) |
| Communication | Direct (Netherlands, USA) vs indirect (Japan, India) |
| Hierarchy | Flat (Sweden, Denmark) vs steep (India, Malaysia) |
| Decision-making | Individual (USA) vs consensus (Japan) |
| Business relationships | Deal-focused (USA, Germany) vs relationship-focused (China — guanxi, Arab countries) |
| Gift-giving | Expected (Japan, China) vs regulated (USA) |
| Non-verbal | Thumbs-up is offensive in parts of the Middle East; head wobble in India |
Exam tip
Use at least three country examples in a "behavioural differences" answer — examiners reward specific illustrations.
Topic 5
Hofstede's model for comparing cultures
Based on a survey of IBM employees in over 50 countries (1967–73); originally four dimensions, later six.
- Power distance
- Extent to which less powerful members accept unequal power distribution
- Individualism vs collectivism
- Loose ties and self-focus vs tight in-groups and loyalty
- Masculinity vs femininity
- Achievement and competition vs caring and quality of life
- Uncertainty avoidance
- Discomfort with ambiguity; preference for rules
- Long-term vs short-term orientation
- Thrift and perseverance vs tradition and quick results
- Indulgence vs restraint
- Freedom to enjoy life vs control of gratification
| Dimension | India | USA | Japan |
|---|---|---|---|
| Power distance | High (77) | Low (40) | Medium (54) |
| Individualism | Medium (48) | Very high (91) | Medium (46) |
| Masculinity | Medium-high (56) | High (62) | Very high (95) |
| Uncertainty avoidance | Low-medium (40) | Low (46) | Very high (92) |
| Long-term orientation | Medium (51) | Low (26) | High (88) |
| Indulgence | Low (26) | High (68) | Low (42) |
Implications for HRM
- High power distance: centralised decisions; employees expect direction; top-down appraisal.
- Collectivism: team rewards, loyalty, referral hiring, harmony valued.
- High uncertainty avoidance: detailed rules, job security, formal training.
- Long-term orientation: investment in long-term careers.
Criticisms
- One company (IBM) sample; dated data.
- Nations treated as culturally uniform (India is very diverse).
- Questionnaire may not capture deep culture.
Topic 6
The GLOBE model
GLOBE (Global Leadership and Organizational Behavior Effectiveness) study led by Robert House (from 1993) surveyed about 17,000 middle managers in 62 societies.
Performance orientation
Assertiveness
Future orientation
Humane orientation
Institutional collectivism
In-group collectivism
Gender egalitarianism
Power distance
Uncertainty avoidance
- Measures both practices ("as is") and values ("should be").
- Groups 62 societies into 10 clusters (Southern Asia includes India, Iran, Indonesia, Malaysia, Philippines, Thailand).
- Identifies culturally endorsed leadership styles: charismatic/value-based (universally endorsed), team-oriented, participative, humane, autonomous, self-protective.
Sample
IBM employees
Managers in 951 organisations across industries
Dimensions
6
9
Measures
Values
Practices and values
Focus
National culture
Culture and leadership
Period
1967–73 (updated later)
1990s–2000s
Key terms
- Cultural shift
- Change in a society's values and behaviours over time
- Power distance
- Acceptance of unequal distribution of power
- Uncertainty avoidance
- Degree of discomfort with ambiguity and the unknown
- GLOBE
- Study of culture and leadership in 62 societies with nine dimensions
- Glocalisation
- Adapting global practices to local culture
Quick revision
- Cultural shift driven by economy, technology, education, globalisation.
- Foreign influence: colonialism, MNCs, media, diaspora.
- Hofstede: PDI, IDV, MAS, UAI, LTO, IVR.
- India: high power distance, medium collectivism, low indulgence.
- GLOBE: nine dimensions, 62 societies, practices and values.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.What is meant by cultural shift?
- Q2.How does foreign intervention influence culture?
- Q3.Name Hofstede's six dimensions.
- Q4.What is power distance?
- Q5.What is the GLOBE study?
- Q6.State two criticisms of Hofstede's model.
Long-answer questions
- Q1.Discuss the significance of cultural shift and the influence of economic factors and foreign intervention.
- Q2.Explain cultural and behavioural differences across countries with examples.
- Q3.Explain Hofstede's cultural dimensions and their implications for HRM.
- Q4.Compare Hofstede's and the GLOBE models for comparing cultures.
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