In The Name Of Allah The Most

Beneficent And Merciful

 CULTURAL COMPATIBILITY
&
HUMAN RESOURCE PRACTICES
PRESENTERS

Zoya chaudhry
Iqra khan
Sidra Ghazanfar
Faizan
Kokab Khalid
Sher Afghan
Mudassir Khalid
CULTURAL COMPATIBILITY
ZOYA
(MB-08-06)
 CULTURE
“Culture is the customs and civilization of a particular
people or group”
CULTURAL COMPATIBILITY
“It is the capability of different cultures to live together
harmoniously.”
GLOBALIZATION
Globalization has resulted in significant implications for
HR functions as they attempt to develop global HR
strategies and design programs and processes to
manage a global workforce. The key to success is to
balance global standardization and local autonomy.
ORGANIZATIONAL STRUCTURES

FOR
GLOBAL BUSINESS
1) Domestic exporter - heavy centralized activities in
one country (financing, sales, marketing, human
resources, strategic management) while sales are
dispersed using agency agreements, and
subsidiaries that are reliant on the home company
2) Multinational firm - control and management of
finances out of central home base, while production,
sales and marketing operations are in other
countries. Products are made to fit local markets i.e.
financial firms, General Motors etc
3) Franchisers - product is created, designed
and financed in home country, but for product-
specific reasons, there is a heavy reliance on
foreign personnel for production, marketing,
and human resources. i.e. McDonald's, KFC
4) Transnational firms - have no national home
base, have several regional home bases, and
optimize supply and demand constraints
locally, central core for decision making, but
dispersed power and financial power to the
divisions. i.e. Citicorp, Sony, Ford
ORGANIZATIONAL EVOLUTIONARY
DEVELOPMENT CURVE
GLOBAL MIND-SET
MODEL
GLOBALLY ORIENTED CULTURES

1) ETHNOCENTRISM
Ethnocentric individuals interpret the world
through the eyes of their own culture, not
recognizing, even devaluing, cultures that are
different from their own.
 Ethnocentric can play an important role in
preserving standards and uniformity across the
global corporation
2) POLYCENTRISM Polycentric individuals adapt
and assimilate to the values, attitudes and
beliefs of another culture.
 Polycentric individuals can play the role of
empathetic “advisors,” effective at bridging the
gap and transferring knowledge between the
local environment and corporate.
 The danger with the polycentric mindset is the
tendency to “go native”, sometimes to the
detriment of the organization’s objectives.
3) GEOCENTRISM
Geocentric individuals believe there are certain
cultural universals and commonalities in the
world and that no culture is superior or inferior to
another.
 The geocentric mindset accepts the premise
that bright people [do] bright things around the
world
 Also called “cosmopolitans,” these types of
individuals focus on finding commonalities and
spreading universal ideas and juggling the
requirements of diverse places
GLOBAL MINDSET MODEL
DEVELOPMENTAL MODEL
OF INTERCULTURAL
SENSITIVITY
 Milton Bennett’s Model of Intercultural Sensitivity
(1993) postulates a development progression that
that all individuals go through as they develop
into geocentric or cosmopolitans
 As individuals mature globally, they move from
the “ethnocentric” stages of denial, defense, and
minimization to the “ethno relative” stages of
acceptance, adaptation, and integration.
 Other empirical work has demonstrated that the
more international experiences individuals have,
the less ethnocentric they become
Hence, associates
who have reached
the ethno relative
stages of their
individual
development –
those with
geocentric
mindsets – are
vital for the new
chaordic,
Transnational HR
organization to
function effectively
 IQRA
(MB-08-12)

COLLECTIVISM
VS.
INDIVIDUALISM
COLLECTIVISM:

 The Chinese culture is collective and of "high

context."
 Collectivism emphasizes group harmony and
interdependence.
 Chinese negotiators dislike taking the initiative and
normally pay more attention to maintaining a
harmonious relationship
 In their decisions, more likely to consult their superiors
 motivation for favoring certain norms over others is
also driven by cultural factors
 Societal norms are known to reward those who
subscribe to them and punish those who deviate
 HR STRATEGIES FOR COLLECTIVISM

 Avoid open conflict, and when a conflict

emerges, it must be resolved in inner circles
before it becomes serious enough to justify public
involvement
 Use delaying tactics
 Use more obliging and avoiding conflict
resolution styles
 Maintain relations as key motivators in their
negotiation strategy
INDIVIDUALISM:
 The North American culture is individualistic and
of "low context”
 Individualism emphasizes individual rights and
independence.
 American negotiators tend to be authoritative,
autocratic and in a hurry to make a deal
 Less decisive
 American executives emphasize personal
motivations (Self-Esteem, Position In Company)
 HR STRATEGIES FOR INDIVIDUALISM

 Use less obliging and avoiding conflict resolution

styles
 Show more concern for goal achievement
 Individuals be responsible for all decisions by
themselves.
 Turning to superiors for instruction on ordinary
conflicts, particularly task-related conflicts could
signal incompetence at one's level of responsibility
 FOUR ALTERNATIVES
FOR A CROSS-BORDER
STRATEGY
LOCAL ADAPTATION:
1) International Strategy:
 Appropriate when there is little foreign business –
knowledge transfer from the center of
headquarters.
 Coordination costs are low.
2) Multinational Strategy:
 Affiliates are autonomous and local adapted.
 Cross-border advantages of standardization and
learning are low.
 Coordination-costs are lowest.
GLOBAL INTEGRATION:
3) Global Strategy:
 Advantages of standardization of policies and
practices.
 Strong centralism.
 Lack of local responsiveness causes disadvantages.
 National segmented markets, cultures, policies set
barriers
 Coordination costs are high.
4) Transnational Strategy:
 Uses advantages from globalization, localization and
cross-border learning simultaneously.
 Coordination costs are highest
HOFSTEDE’S MODEL OF
CROSS-CULTURAL
DIFFERENCES
" Culture is more often a source of conflict
than of synergy. Cultural differences are a
nuisance at best and often a disaster.“
Prof. Geert Hofstede
Geert Hofstede's model gives insight into
other cultures so that international
businesses can be more effective when
interacting with people in other countries.
HOFSTEDE'S FIVE CULTURAL
DIMENSIONS
1) Power Distance Index (PDI) : It is the extent to which
the less powerful members of organizations accept and
expect that power is distributed unequally
2) Individualism (IDV) : It is the degree to which individual
is expected to look after himself
3) Masculinity (MAS): It is the degree to which women are
assertive and competitive in any country
4) Uncertainty Avoidance Index (UAI ) : It indicates to
what extent a culture makes its members to feel either
uncomfortable or comfortable in unusual situations
5) Long-Term Orientation (LTO) : LT oriented cultures
have the values of insistence & withholding while ST-
oriented cultures respect their traditions, fulfill social
duties and protect their own faces
HOME CULTURE (NORWAY) Vs.
HOST CULTURE (PAKISTAN)
FAIZAN
FAIZAN
(MB-08-33)
TELENOR GROUP

• It ranks as world’s 7th largest mobile operator

• More than 164 million mobile subscriptions
and operations in 13 countries

• The largest provider of TV services in the

Nordic region

• Organized into three business areas:

– Mobile operations (13 countries)
– Fixed-line (Nordic region)
– Broadcast services (Nordic region)
BUSINESS AREAS
COMPANIES IN ALL BUSINESS
AREAS PER COUNTRY
 INDIA: NEW OPPORTUNITY

• On 29 October, 2008 Telenor has entered Indian

market through a definitive agreement to
subscribe to new shares in Unitech Wireless
• Subject to regulatory approvals, Telenor will hold
a 60% controlling stake in Unitech Wireless
• Unitech Wireless plans to launch its services in
mid 2009
TELENOR’S VISION

Telenor’s vision is simple:

“We're here to
help ”

It exists to help its customers get the full benefit of

communication services in their daily lives.
CORE VALUES OF TELENOR

 MAKE IT EASY for

customers to get what they
want, when they want it
 BE RESPECTFUL of our
customers and their local
cultures
 KEEP PROMISES about
delivery, not over promising -
actions not words
 BE INSPIRING and strive to
bring energy into the things
we do
 SHER
AFGHAN
(MB-08-75)

TELENOR
HUMAN CAPITAL
DIVISION
DEPARTMENT
TELENOR BELIEVES

We believe that growth comes with sincere

understanding of
People’s needs, in order to initiate changes
PEOPLE ARE TELENOR’S MOST
VALUABLE ASSET

 Employed approximately 4 000 leaders – and a

workforce on more than 36 000 man-years
 Manages people and competence to ensure that
the company fulfils its strategy
 Is committed to creating a diverse organization
(gender, ethnicity/nationality, age, disabilities)
 Is responsible for high job satisfaction -
opportunities for personal and professional
development
 Offers extensive opportunities for learning and
development
HIERARCHY : TELENOR HUMAN
CAPITAL DIVISION

VICE PRESIDENT
DIRECTOR

MANAGER

ASSISTANT MANAGER

EXECUTIVE

INTERNEES
TELENOR PAKISTAN

 Telenor Pakistan launched its operations in

March 2005
 Telenor Pakistan is 100% owned by Telenor
ASA
 Telenor is spread across Pakistan, creating
2,500 direct and 25,000-plus indirect
employment opportunities.
 It has a network of 23 company-owned sales
and service centers, more than 200 franchisees
and some 100,000 retail outlets
ISLAMABAD HEAD OFFICE
MANAGEMENT:TELENOR PAKISTAN

CEO TELENOR VP HUMAN CAPITAL

DIVISION TELENOR
Mr. Jon Eddy Abdullah
Mr. Nayab Baig
 SIDRA
(MB-08-16)

CULTURE
&
HUMAN RESOURCE
CULTURAL COMPATIBILITY
(AROUND THE GLOBE)
CULTURALLY COMPATIBLE
HR PRACTICES
ROUND THE
GLOBE
TELENOR “A SALAD BOWL”

N BA
I A NG
E G LA
W DE
OR MA SH
N LAY I
SIA
N
N THAI
IAN RI A
IND GA
N
HU
PA
KIS
FIN TA
NI
WELL-FIT PRACTICES FOR ALL
CULTURES

1) There are no cabins in any Telenor centre.

There is a central lobby where the front desk
men to the Regional Officer (RO) all sit
together.
SELF-SERVICE
2) There is a lot of respect given to all employees. Here
the manager shakes hand with the mop. All the
employees self-serve themselves. They are not
allowed to make the service men work in their
service
FREEDOM OF EXPRESSION
Telenor claims “ FREEDOM OF EXPRESSION

So, every person relating to any culture

religion or believes is free to express
himself and pursue his values
HALAL FOOD

Telenor has decided to serve halal food

exclusively to their employees, on the
Christmas celebration.
 Telenor, which is the leading supplier of internet
and telephony solutions in Norway, and deeply
involved in foreign investments, has shown
submission to Islam by deciding to serve halal
food exclusively to their employees on their
Christmas celebration.
 KOUKAB
(MB-08-20)

CULTURALLY COMPATIBLE
HR PRACTICES
IN
PAKISTAN
HAJJ POLICY FOR STAFF

Telenor do value the

culture of its
transnational bases
 In Pakistan Telenor
has the policy to send
its 2 employees on
Hajj every year
 Free tickets to Hajj are
drawn in a lucky draw
RAMZAN

 Telenor arranges Aftar

meal for its staff in Ramzan.
 Telenor offices are being
closed according to
Ramzan timings
 In non-Muslim countries,
Muslim workers in Telenor
are given prior permission to
work according to Ramzan
timings
DRESS

 Telenor pursue cultural

identities of their host
countries in its events also

 In the last annual meeting

of Telenor, They decided
sherwani as the dress code
in Pakistan.
DRESS

Even in inter-province
culture differences, the
example of Quetta is
interesting where
employees aren’t asked to
wear suits as a formal
dress code. They wear
shalwar kameez in offices
BELL
As a cultural symbol Pakistani
Telenor offices have placed a big
bell with a string on the main
door of offices. It is for the
purpose that any one who feels
himself satisfied with Telenor can
ring the bell. It is in coincidence
with the practice of Late Mughal
King Jahangir who used to listen
to the petitions of his sub
ordinates whoever has any
complaint.
 MUDASSIR
(MB-08-61)

CONCLUSION
CHALLENGES
Telenor face many challenges with the ever
growing need of competent Human Resource.

 It is really hard to hire and retain the best people

especially around the globe.
 The global companies face many challenges
regarding the cultural identity of respective
nations.
 They have to adjust culturally to the environment
of respective countries.
 When hiring the HR staff of that very country, the
organization is exposed to many challenges to
make them perform at their best.
COMMENTS
 Telenor is carrying out satisfactory culturally
compatible strategies for its HR.
 Although it is not promoting the “cultural identity”
agenda that aggressively but even then it is
facing much less cultural conflicts among its HR.
 It may be due to the reason that it has divided
itself in just two markets: Europe & Asia. The
European market almost holds the same culture
and three of its Asian market countries are
Islamic.
 Telenor is so far quite successful in hiring and
retaining exceptionally talented HR worldwide.
 Telenor has started a TELECOM MBA
for its leaders
 WE VALUE
CULTURAL
DIFFERENCES