Analysis of Brazilian Culture using Hofstede’s Model
International human resource management is considered as a typical human resource function. It mirrors the basic human resource functions like recruitment, selection, training and development. The difference of this concept with human resource management is the fact that the functions are applied at the international level (Banfield and Kay 2012). The current report highlights the manner in which the International Red Cross (IRC) can adapt itself to the culture of Brazil. The national culture of Brazil has been analysed along with the business culture by using the Hofstede method of cultural dimension. The reward system that needs to be adopted is also analysed so that the employees working for the company in Brazil are motivated by using a monitory system. At the same, the application of EPRG framework developed by Perlmutter has been evaluated so that the manager of IRC can recognise an alternate solution for motivating employees.
To gain success in a country like Brazil, the managers of IRC need to consider the work culture that exists in the country. According to Deresky (2017), the cultural dimension of a country can be analysed by evaluating the model proposed by Hofstede. The culture of the country can be determined using six dimensions of Hofstede’s model of strategic development. These six dimensions include:
- Power Distance Index (PDI)
- Individualism versus Collectivism (IDV)
- Masculinity versus Femininity (MAS)
- Uncertainty Avoidance Index (UAI)
- Long-Term Orientation versus Short-Term Normative Orientation (LTO)
- Indulgence versus Restraint (IND)
|
PDI |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High PDI |
Have centralized organizations and complex hierarchies. It also has large gaps in compensation, authority and respect |
Need to acknowledge the concerns of the leaders and it is also needed that the top-tier of the management is visited to gain answers (Brewster et al. 2011) |
High PDI exists in Brazil, as the people believe that hierarchy needs to be respected and the inequality that exists between the people is accepted. Paying respect to the elders is a national culture of Brazil. The impact of this is in organisations is that IRC needs to maintain a hierarchical organisational structure in Brazil so that the inequalities among the people are made clear. |
|
|
Low PDI |
The organisational structure, in this case, is flat and there is no such power distance between supervisors and employees. They are considered as equal and one |
The responsibilities are delegated and decision making is shared between the employees and the employers |
Low PDI exists in the USA, as the people are treated equally. It is believed that both the leaders and the followers endorse the inequalities that exist in an organisation. Therefore, a low PDI exists in which not much heed is paid to the organisational structure. Therefore, it is important that the managers of IRC keep this particular method in mind while setting up campaign in the country. Hence, the Low PDI can have a different view on the culture of the organisations in USA as compared with Brazil. |
Table 1: Hofstede’s dimension of culture (PDI)
(Source: Created by author)
|
IDV |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High IDV |
The time, privacy and freedom of the people are valued. The employees are provided with challenges and a reward is given to the employees able to fulfil the challenges |
The accomplishment of individuals is appreciated but the work/life balance of the employees is lost and they do not have the opportunities to have social interaction. |
The USA has a high individualism culture as is evidenced from the manner in which the employees and employers put emphasise on themselves. The people are more concerned about the family members and personal wellbeing instead of the team members in an organisation. This may a cause for problem for IRC, as the aim of the organisation is to provide support to one another and the concerned society. Therefore, IRC need to ensure that the managers of IRC understand the manner in which the individual culture can be used for its benefit |
|
|
Low IDV |
The focus is more on the development of skills of the employees and motivates them to gain intrinsic rewards It also helps in maintaining harmony among group members |
According to Purce (2014), the employees having low IDV tend to shy away from giving negative feedback in public and focus on gaining wisdom. They tend to decline any invitation repeatedly |
Brazil has a low rate of IDV, which suggests that the national culture of Brazil is into protecting one another. Employees working in an organisation can provide support to one another and share the gains and losses. |
Table 2: Hofstede’s dimension of culture (IDV)
(Source: Created by author)
|
MAS |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High MAS |
These are attributed with pride and a feeling of importance. These people like to be more dominating |
Employees may be aware of the difference in roles and opportunities in business can be recognised by being available for long hours (Deal and Kennedy 1982) |
Brazil is driven by competition and success. The employees employed in the IRC will be subjected to compete against one another and such practise continuous among people from an early childhood. |
This particular factor is similar to Brazil. Like Brazil, the USA is driven by high competitiveness and a wish to endorse growth in positions. Therefore, the masculinity of the country is high and it can be related to the fact that it is related to the individualist culture of the organisations. These two attribute can combine well to ensure that an organisation like IRC can gain success in the competitive business market. Therefore, this is one area that can be seen as a common factor in both countries |
|
Low MAS |
They are more focused on the quality of life and enjoy the consensual relationship |
They believe in negotiation and believe in maintaining flexibility in work |
Table 3: Hofstede’s dimension of culture (MAS)
(Source: Created by author)
|
UAI |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High UAI |
They are usually conservative unless threatened by possibilities of failure. People with this dimension are more expressive |
It is needed that the employees remain clear about the goals and encourage creative thinking for improvement |
Brazil has a high score in this dimension and changes made by IRC in the policies and the Brazilian people will welcome procedures. This can help in maintaining the innovative culture in the organisation |
|
|
Low UAI |
These people are more open to change and embrace the concept of innovation |
The aim is to maintain the focus of the employees without emphasis on showing off the talents possessed. |
The USA has a low UAI culture, as the people are not afraid to take risks and welcome any type of innovation that may befall in the organisations. Although some people may think it as a bad influence, others may embrace it and make changes so that it can influence the people. It is highly unlikely that IRC may have any innovation or changes in the procedures of its organisation. Therefore, this can be considered as one factor that can be considered as an advantage for IRC. |
Table 4: Hofstede’s dimension of culture (UAI)
(Source: Created by author)
|
LTO |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High LTO |
People seek the truth about a particular event that occurs. This provides them with an opportunity to remain modest and emphasise on virtues and obligation (Foot and Hook 2011). |
People behave in a modest way and avoid interacting with other people. The compromising nature of the people defines this attribute |
||
|
Low LTO |
People have a strong convention and people tend to oversell the ideas and beliefs. The assertions are critically assessed |
People need to sell their ideas so that they can be taken seriously. The selfish nature of the people and their disagreement to compromise makes up this attribute |
Brazil has a low LTO as the people of the country tend to sell themselves to the organisations. This can be hugely effective for IRC as the organisation need to sell their ideas so that they can promote its business in the market. They believe in modern education for preparing for the future |
This is another similar context with Brazil. The people of the USA follow a Low LTO, which suggests that, the country analyses new information to understand whether it is true. However, the people remain practical and despite the fact that most people are god faring the use of scientific technologies are welcomed by the country. Therefore, it can be said that the IRC can benefit from this particular attribute as the company aims to help the society by being practical and at the same time using scientific methods. |
Table 5: Hofstede’s dimension of culture (LTO)
(Source: Created by author)
|
IND |
Characteristics |
Tips |
Culture of Brazil |
Culture of USA |
|
High IND |
This is characterised by the optimisation that people have and the importance of speech |
These people do not take life seriously and leave things more to chance. They encourage debate and dialogue between two people |
Brazil has a high indulgent society and the positive attitude of the employees can help IRC in difficult times. This can help the organisation to remain focused and take challenging decisions |
USA has a high Indulgence score in which the people of the country believe that entertainment is required along with work. Therefore, it can be said that the USA can be a strong candidate for the establishment of IRC. This is also supported by the fact that the country has promoted the abolition of drugs and other life threatening items. Therefore, the people of the society can be convinced by the IRC |
|
Low IND |
Low IND indicates pessimistic nature and controlled and cautious approach to activities |
They respect and abide by the formal rules and regulations in an organisation. However, during informal meeting negativity is presented |
Table 6: Hofstede’s dimension of culture (IND)
(Source: Created by author)
Figure: Hofstede analysis of the culture of Brazil and USA
(Source: Paillé et al. 2014)
The analysis of the cultural dimension can provide an idea of the type of reward system that can be suitable for the employees of Brazil. The reward system needs to be based on the advantages and disadvantages it provides and the manner in which the people of Brazil react to the concept of gaining a reward. As stated by Mankin (2009) the reward system is necessary to provide motivation to the employees for continuing to perform well in the organisations. In this regard, analysis can be made on two types of reward system that can help the employees working in IRC to remain motivated.
The EPRG Framework for IRC in Brazil
One of the reward systems that can be analysed is the Total rewards system. According to Jackson, Schuler and Jiang (2014), the total reward system brings about the investments that are made by an organisation. It helps in bringing about the valuable things for the employees that they perceive in an organisation. In the case of IRC operating in Brazil, the total reward system plan can be made taking into consideration certain methods that attract the employees. These include salary, bonus, incentive pay, benefits and employee growth opportunities. According to Handy (1999), these have certain advantages that help in the motivation of employees.
One such advantage of total reward system particularly in the context of Brazil is that it helps in the retention of the employees. The employee retention can be done by providing bonus and incentive so that monetary motivation can be gained. According to Mello (2015), the analysis of the cultural dimension of Brazil states that despite having a collective attitude the employees compete against another for success and recognition. Hence, getting an extra incentive from the IRC due to the services provided to the community can encourage the employees to continue working in the organisation.
Another advantage that can be obtained by the application of this type of system is the increased performance of the employees. With the extra incentive and bonus, available employees can provide their best efforts in helping the society of Brazil. This can provide them with extra motivation to work and improve their performance. This can assist IRC as the best efforts of the employees can be obtained. Therefore, IRC can improve its performance and ensure that the employees working in the company get a proper exposure at a workplace.
At the same time, IRC can use another method to provide a reward to the employees. The application of the performance related pay can also help IRC to motivate the employees. Schein (2004) stated that the performance-related pay is a manner in which payment of employees can be managed by linking it with the salary of the employees. The salary is liked after an assessment has been made of the individual performance of the employees. This performance is measured against the pre-defined objectives of the employees and is paid as per the merit of the employees. This is one of the oldest concepts that that exists in the business market and has certain benefits that can be used by IRC to gain a competitive advantage.
Reward System for Employee Motivation
One such advantage of the performance related pay includes setting a defined framework. Managers of IRC can ensure that a framework can be developed that helps in setting the goals of the organisation. The employees recruited from Brazil can be given a specific set of goals and based on the goals the payment can be made. This can help in improving the productivity as well as the performance of the employees (Baum 2016). Another advantage that can be provided is the fact that the focus of the employees can improve. The employees of IRC from Brazil can maintain their focus on the type of goals that need to be achieved so that they can be eligible for gaining payment under the method.
However, there are disadvantages as well in this method. As stated by Wilton (2016) the disadvantage of the method is that employees may feel demotivated if the goals are too hard. The difficulty level of the goals needs to be based on the skills of the employees. In the case of IRC, the company provides social community service and thereby, the expectation is that the goals set may not be as tough. This can provide a mode of encouragement for the employees. Another method is that it reduces the equality of the payment. Workers belonging to the same level may get varied payment depending upon the performance of the employees.
Thus, after the analysis, it can be said IRC implement the total rewards system so that it can maintain the loyalty of the customers. As stated by Luthans and Doh (2018) the reward system does not contain any type of discrimination against any of the employees and encourage them to continue to work harder and gain the deserved bonus or incentive. This can help the people of Brazil to remain competitive in the market and provide a complete performance for success. Thus, it can be said that total reward system is appropriate as it can be aligned with the work culture of Brazil.
Northouse (2015) stated that the perception of the employees about the world could be described as the international management orientation. The classification of the alternative management orientation can be done by applying EPRG framework developed by Perlmutter. The application of the method can help in identifying the behaviour of the employees. This is usually done in four ways:
Ethnocentric: As stated by Morschett, Schramm-Klein and Zentes (2015) the ethnocentric approach is the default standards that every business organisation need to comply. Companies tend not to change the products or services that it provides initially. Instead, the original products and services of the company are retained to maintain the culture of the company. In the case of IRC, the main motto of the company is to help people and ensure that the community in which they work receive positive care. Hence, following an ethnocentric approach can help IRC to remain true to its culture and encourage the Brazilian employees to follow the norms of the company. However, at the same time, Stone et al. (2015) argued that this approach might have a negative impact in the manner that sometimes organisations need to change its policies to comply with the set laws of the country. Failure to do so can result in loss of profit for a company. Therefore, the general manager of IRC needs to adjust to the norms of Brazil by maintaining its organisational culture.
Conclusion
Polycentric: The polycentric approach provides equal opportunity to the market of every country. Separate strategies for every country are made so that organisations can prevail in the economic and business environment of that particular country. Sheehan (2014) stated that this particular approach is suitable for countries that have financial constraints. Therefore, in a country like Brazil, the application of this type of approach can help IRC to execute its business model, as skilled managers are not required to maintain a centralised policy. However, the disadvantage is that the application of the approach can restrict the career approach of the local as well as the foreign nationals. The chances of achieving synergy are also reduced as the approach of analysing every country can slow down the expansion process for IRC.
Regiocentric: Managers use the application of the regiocentric approach in order to understand the economies of the countries as it is considered as the main factor for a company. Some of the countries in the world have a similar economy and it is required that the managers make a minor analysis of the changes that exist in the economies. As stated by Storey (2014) the regiocentric approach can help companies to understand the changes that may take place in the economies and thereby based on that analysis, managers can formulate strategies. In the case of IRC, the economies of Brazil, Argentina and Venezuela are similar to one another hence, it is necessary for IRC to analyse the three economies and make strategies for Brazil. On the downside, the disadvantage of the application of the approach is that due to the regional identity being similar, a slight change in the economy may jeopardise the chances of a company to be successful (Purce 2014).
Geocentric: The geocentric approach helps in providing encouragement to continue with global marketing. The geocentric approach ensures that companies develop a potential human resource management unit that can are within the political limits. In the case of IRC, the company can maintain a strong culture among the employees as it has already been seen that Brazil maintains collectivism culture. However, Crowley-Henry and Heaslip (2014) stated that the main disadvantage of the approach is that the immigration rules may restrict the growth of the market and because of this maintaining a balance between the local and global responsibilities can be difficult.
Figure: EPRG Framework
(Source: Kramar 2014)
Conclusion and Recommendation
After the analysis of the EPRG framework, it can be recommended that the general manager of IRC follow the ethnocentric approach. This is mainly because of the fact that the culture of the organisation can be maintained and IRC can continue its work of helping the community. Apart from this, the competitive nature of the employees in Brazil can drive the company using the international rules. Thus, it can be conducted that in order to maintain a proper and competitive business it is necessary for the managers of IRC to conduct a cultural analysis of Brazil. This can help the organisation to understand the differences that it needs to deal with while maintaining its organisational culture and function.
References
Banfield, P. and Kay, R., 2012. Introduction to Human Resource Management (2nd Ed). Oxford. Oxford University Press.
Baum, T. ed., 2016. Human resource issues in international business. Elsevier.
Brewster, C, Sparrow, P, Vernon, G and Houldsworth, E., 2011. International Human Resource Management (3rd Edition). London; CIPD.
Crowley-Henry, M. and Heaslip, G., 2014. Short-term international assignments. Military perspectives and implications for international human resource management. European Management Journal, 32(5), pp.752-760.
Deal, T.E. and Kennedy, AA., 1982 Corporate cultures: the rites and rituals of corporate life, Harmondsworth, Penguin.
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson Education
Foot, M. and Hook, C., 2011. Introducing Human Resource Management. Harlow; Pearson Education Limited.
Handy, C.B., 1999 [1976] Understanding organizations, London, Penguin.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource management the next approach?. The International Journal of Human Resource Management, 25(8), pp.1069-1089.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior. McGraw-Hill.
Mankin, D., 2009. Human Resource Development. Oxford; Oxford University Press.
Mello, J A., 2015. Strategic Human Resource Management (4th Edition). Stamford; Cengage.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp. 978-3658078836). Springer.
Northouse, P.G., 2015. Leadership: Theory and Practice. 7th Ed. London. Sage Publications Ltd.
Paillé, P., Chen, Y., Boiral, O. and Jin, J., 2014. The impact of human resource management on environmental performance: An employee-level study. Journal of Business Ethics, 121(3), pp.451-466.
Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Schein, E.H., 2004. Organisational Culture and Leadership. 3rd ed. San Francisco: Jossey-Bass.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and medium-sized firms. International Small Business Journal, 32(5), pp.545-570.
Stone, D.L., Deadrick, D.L., Lukaszewski, K.M. and Johnson, R., 2015. The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), pp.216-231.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
