Republic of the Philippines

Romblon State University

Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

Topic: International Human Resource Management

Output No. 5 Cases/Situations:
1. Establishing a Branch of a Family Business in China
2. Long Term Development Plans of a German Multinational in the US
3. Female Careers in Various Environments
4. Meeting on a Friday in Kenya

Submitted by: Jeremy F. Lilang

Submitted to: Jun P. Dalisay, Ph.D., RGC

IHRM Action Case 2.1

ESTABLISHING A BRANCH OF A FAMILY BUSINESS IN CHINA

Discussion Questions:

1. Relate the described situation to one of the cultural dimensions identified by

Hofstede. How can you explain it?

In the case study, the German company faced a lot of mistakes that were related
to power distance. First, they imitate their successful management structure from
Germany, which is a low-power distance culture. Three general managers equally
shared the responsibilities for the business activities of the firm in this structure.
However, this structure was not suited for the Chinese context, where there is a strong
emphasis on hierarchy and power distance.

Second, the German company assigned tasks to Chinese employees by people

they had never met before, this situation created mistrust and misunderstanding
between both parties. In a high-power distance culture, it is important to develop a good
rapport with the co-workers so that both of you can perform various tasks more
efficiently.

Lastly, the German company unconsidered their obligations to the Chinese

employees, such as taking care of the relationships with the Chinese government and
banks and other concerns. This action makes the Chinese employees feeling neglected
and unvalued. In a high-power distance culture, it is important to show respect to those
in power, such as government officials and bankers. For not giving concern of these
relationships, the German company was simply saying that they did not value the
Chinese employees.

In this case the German company's big mistakes were all related to power
distance. By respecting and embracing the cultural dimensions of power distance, the
German company could have been more successful in China.
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

2. How does this situation compare to comparable situations in your home country?
What are the limits of a cultural explanation?

The situation in the case study is similar to comparable situations in the

Philippines. The Philippines is also a high-power distance culture, so the same cultural
dimensions that applied to China would also apply to the Philippines. For example, in the
Philippines, it is important to develop good rapport with stakeholders in order to have a
smooth negotiation. It is also important to show respect to those in power, such as
government officials and bankers. With the absence of these good characteristics, it is
very impossible for your employees to work motivated or productive in the best of their
abilities.

However, there are some differences between the Philippines and China.. For
example, the Philippines more collectivist culture than China. This means that Filipinos
are more likely considering the group needs before their individual needs. In China, on
the other hand, people are more likely to put their personal needs before the group
needs. This difference in collectivist could have an impact on how the German company
would need to operate in the Philippines. For example, the German company might need
to be more careful about making decisions that would affect the group as a whole. They
need to be more considerate to the needs of their employees and always assure to give
importance and value them.

In conclusion, the cultural dimensions of power distance and collectivism are

important thing to consider when doing business in the Philippines. However, awareness
of the specific cultural context of the Philippines and how it might differ from China is
vital. The limits of a cultural explanation are that it can only explain so much. Other
factors can also contribute to the success or failure of a business, such as the quality of
the product or service, the level of competition, and the economic status.

IHRM IN ACTION CASE 2.2

LONG-TERM DEVELOPMENT PLANS OF A GERMAN MULTINATIONAL IN THE USA

Discussion Questions:

1. Relate the described situation to one of the cultural dimensions identified by

Hofstede. Can you explain Peter Hansen's surprise using this theory?

The cultural dimension that is most relevant to this case is long-term orientation
focus on the future, if you have this cultural perspective you value persistence,
perseverance, saving and being able to adapt. In Germany, long-term orientation is
valued. Germans are more likely to value loyalty to their employers and to see their
careers as a long-term investment. In the United States, on the other hand, long-term
orientation is less important. Americans are more likely to value change and to see their
careers as a series of short-term opportunities.

Peter Hansen's surprise can be explained by his assumption that John Miller
would share his cultural values. He assumed that John Miller would value the long-term
investment that the German company had made in his training and career development.
However, John Miller may have valued change and opportunity more than long-term
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

loyalty. This difference in cultural values may have led John Miller to leave the German
company for a competitor.

Hofstede's cultural dimension of long-term orientation can also be used to explain

why John Miller was able to get a better job offer from a competitor. In the United States,
there is a greater demand for employees with long-term training and experience. This is
because American companies are more likely to invest in long-term projects and
strategies. In Germany, on the other hand, there is less demand for employees with
long-term training and experience. This is because German companies are more likely
to focus on short-term projects and strategies.

Therefore, John Miller was able to get a better job offer from a competitor
because he had the skills and experience that were in demand in the United States. This
is an example of how cultural differences can affect the job market and the opportunities
that are available to employees.

IHRM IN ACTION CASE 2.3

FEMALE CAREERS IN VARIOUS ENVIRONMENTS
Discussion Questions:

1. Relate the situation in Norway to one of the cultural dimensions identified by

Hofstede. How can you explain it?

Upon reviewing the case I can say that the situation in Norway can be related to
dimension of femininity versus masculinity can be identified with the circumstance in
Norway. Gender inequalities in the cultural field are related to women’s limited access
and visibility in the professions and to different participation in cultural activities between
women and men (in light of women’s lesser financial resources and amount of leisure
time).Masculinity refers to a cultural value system that emphasizes assertiveness,
competition, and material success. Femininity, on the other hand, refers to a cultural
value system that emphasizes cooperation, relationships, and quality of life.

Norway is a relatively feminine country. This means that there is a strong

emphasis on cooperation and relationships in Norwegian culture. This can be seen in
the way that Norwegians work together to solve problems and in the way that they value
family and friends. However, there is also a strong emphasis on equality in Norwegian
culture. This means that there is a desire to create a society where everyone has the
same opportunities, regardless of gender. This is why Norway has a law requiring 40
percent female representation on corporate boards.

The case of Elisabeth Harstad can be seen as an example of how the cultural
values of masculinity and femininity can interact in the workplace. In the 1980s, when
Harstad was a trainee, it was difficult for women to find international assignments. This
was because the Norwegian culture was more masculine at the time, and there was a
greater emphasis on assertiveness and competition. However, as Norwegian culture has
become more feminine, there has been a greater emphasis on cooperation and
relationships. This has made it easier for women to advance their careers, and Harstad
is now a successful manager and board member.
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

The Norwegian Gender Balance Law (GBL) was proposed in June 14th 2003,
made into a law on December 9th 2005, and implemented from January 1st 2006 with a
two-year grace period. The law mandates at least 40% board representation for both
gender in PLC companies.
However, it is important bear in mind that the law is not a simple and seemingly
magical solution. Woman discrimination can be still observed in the workplace, even in
countries with laws that promote gender equality and women empowerment. it is
important to continue practicing gender equality to achieve peaceful society, with full
human potential and sustainable development.

2. Can the rules for quotas of female managers be applied in other countries as
well? What are the advantages and disadvantages?

Individual countries have proposed the idea of gender quota laws and some have
already implemented it. The European Union (EU) is in the alignment with the same
idea, and the European Commission proposed an EU-directive, in 2012, that will make
EU’s member states implement laws or self-regulate gender quotas for women on
corporate boards. The proposed EU gender quota law target of at least 40 %t of the
underrepresented gender on publicly listed companies by 2018, which is the same as in
Norway. However, the directive is time-limited and is supposed to be removed by 2028
(European Commission, 2015). There has been progress with a higher representation of
women, but that progress has only occurred in some countries and not in others
(European Commission, 2012). The largest publicly listed companies in EU had an
average of 11.9 % women on boards in 2010 and 21.2 % in 2015 (European
Commission, 2015, pp. 1-2). Even though there was an 11.9 % increase during these
years, it was not followed by a proportionate increase when it came to the higher ranked
positions in the corporations, such as CEO and Chairman.

Yes many countries applied quotas rules of female managers as well but, there are
advantages and disadvantages to doing so.

The following are the advantages of qoutas;

 Can signal to the public that a company is committed to gender equality, which can
attract and retain female employees and customers.
 Can help to increase the representation of women in leadership positions.
 Increased diversity of thought and perspectives in the boardroom, improved decision-
making, and increased innovation.
In some countries, quotas are required by law, while in others companies may choose to
implement quotas voluntarily to comply with industry standards or to avoid legal challenges

Quotas can also have some disadvantages such as;

 If not implemented carefully, they can lead to appointing of women employee to
leadership positions, simply to meet the quota even not being qualified for the role.
 Can be costly for companies, as they may need to pay for training and mentoring
programs to help women develop the skills they need to be successful in leadership
positions
 Can sometimes lead to male employees feel that they are being discriminated that can
create a hostile work environment for women.
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

Many advantages and disadvantages are both to consider, many factors should
be considered in order to choose the best decision, including the company's culture, the
industry it operates in, and the legal requirements in the country where it operates.

In the case of Norway, the quota system has been successful in increasing the
number of women on corporate boards. However, there are still some concerns about
tokenism and backlash. It is important to continue to monitor the situation and to make
sure that the quota system is not having unintended consequences.

IHRM IN ACTION CASE 2.4

MEETING ON A FRIDAY IN KENYA?
Discussion Questions:

1. Relate the described situation to one of the cultural dimensions identified by

Hofstede. How can you explain it?

The described situation in the case study can be related to the cultural dimension of
power distance identified by Hofstede. Power distance refers to the strength of a
society’s social hierarchy. The Power Distance Index (PDI) measures the extent to which
those people who are at the lower end of the hierarchy accept the fact that social stance or
power is not distributed equally in the society. Both psychologists and sociologists use this
measure.
A high power distance setting means that a specific culture accepts the inequality in
power differences. A high power distance culture encourages bureaucracy and support
rank and authority.

A low power distance index within a culture means that they support a flat
organizational structure with decentralized decision-making responsibilities. Low power
distance cultures prefer a participative management style.

Researchers have found that people at the bottom of a social hierarchy tend to prefer a
system that would distribute power equally, while people who are at the top of the hierarchy
like things exactly how they are. The people at the top do not want to lose any of the power
that they have accumulated.

The United States is a society with low power distance. This means that people in
the United States expect that power will be distributed more evenly and that everyone will
have a say in decision-making. However, the case study shows that there are still some
challenges for women in leadership positions in the United States. This is because there is
still a perception that leadership is a male role and that women are not as qualified as men
to be in leadership positions.
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

The lack of qualified female candidates that the company is facing is a reflection of
the power distance in the United States. There are fewer women in STEM fields, and there
are fewer female role models in leadership positions. This makes it difficult for women to
see themselves in leadership roles, and it also makes it difficult for them to get the support
they need to advance their careers. The lack of support for women in leadership positions is
also a reflection of the power distance in the United States. Some male employees may feel
threatened by the idea of women in leadership positions, and they may not be willing to
mentor or support them. This can make it difficult for women to advance their careers.

The company is working to address these challenges by increasing its efforts to

recruit and retain qualified female candidates, and by providing more support for women in
leadership positions. However, it is important to note that these challenges are not easy to
overcome. The power distance in the United States is deeply rooted in the culture, and it
will take time and effort to change.

2. How does this situation compare to comparable situations in your home

country? Please explain where are the limits of the cultural explanation?

The situation in the case study is also similar to comparable situations in the
Philippines. The Philippines is a country with high power distance, and this can make it
difficult for women to advance their careers. For example, there are still fewer female role
models in leadership positions in the Philippines. This makes it difficult for women to see
themselves in leadership roles, and it also makes it difficult for them to get the support they
need to advance their careers.

Some male employees may feel threatened by the idea of women in leadership
positions, and they may not be willing to support them, this can make it difficult for women
to advance their careers. Another difference between the situation in the case study and the
situation in the Philippines is that, the Philippines has many laws and regulations that
promote gender equality in the workplace. These laws and regulations can help to level the
playing field for women, and they can make it easier for women to excel in their careers.

The cultural explanation for the challenges that women face in leadership positions
is limited in several ways;

 Women are not simply passive victims of cultural forces. They can make choices and
take actions that can help them to overcome the challenges they face.
 Structural barriers and discrimination- these factors can also make it difficult for
women to excel in their careers, and they need to be addressed to create a more
level playing field for women.
 Changing Cultures, as cultures continue to change, likely, the challenges that women
face in leadership positions will also change.
 Republic of the Philippines
Romblon State University
Graduate Education & Professional Studies
Liwanag, Odiongan, Romblon, Philippines 5505

https://www.thomas.co/resources/type/hr-blog/importance-cultural-diversity-workplace
https://expat.com.ph/cultural-differences-between-philippines-china/
https://www.partnershipinternational.ie/why-is-cultural-diversity-important/
https://study.com/academy/lesson/long-term-orientation-vs-short-term-orientation-hofstedes-
definition-lesson-quiz.html
https://www.economicsdiscussion.net/international-trade/quota-effects-advantages-and-
disadvantages-with-diagram/17516
https://www.diva-portal.org/smash/get/diva2:1119270/FULLTEXT01.pdf
https://www.organizationalpsychologydegrees.com/faq/what-is-power-distance/