Evaluation of Australian culture
Human resource management has become the most critical aspects of success for modern organisations. Globalisation and an increase in diversity among the global population at work have been one of the significant challenges. Cultivation of a diverse workforce is not only a social or ethical approach but reflects proper orientation towards business. Similarly, relocation of the workforce along with adequate talent retention depends on the policies and processes implemented by the human resource management division of any business entity. In light of this context, the current report will consider the given case where two employees Mr Ben Fisher and Mrs Anita Shrestha are being relocated to Thailand as Soft Croc Pty Ltd is opening up an office in Thailand. The report examines the difference in culture between Thailand and Australia to identify factors to be considered for relocation of both the employees. Moreover, the report also evaluates the personal setting of each employee to highlight the difference in necessities for relocation for each of the employees.
Hofstede’s cultural dimension: Australia
The evaluation of the Australian culture by implementing the six dimension model for Hofstede is expected to provide a more profound knowledge regarding the difference in Australian culture in comparison to the global community.
Power distance
Power distance deals with the inequality among the individuals within a society and attitude of the culture towards these differences. Power distance determines the extent of accepting and expecting the unequal distribution of power. It measures the acceptance of the less powerful population in any business organisation. Australia has a low score on power distance (36), and hierarchy is developed within the organisation for convenience (www.hofstede-insights.com 2019). Moreover, the accessibility of the superior is high, and managers are reliant on employees for expertise. It implies that employees in Australia experience a higher level of autonomy. Moreover, managers and employees consult frequently and share information. The mode of communication between different levels of hierarchy is direct, participative and informal.
Individualism
Individualism addresses the concern of independence and its degree within the society for all its members. It reflects that whether people are concerned about the individual goals or group goals. The countries with a high level of individuality are concerned with individual and direct family gaols. On the contrary, a society following collectivist orientation people takes care of themselves in groups in exchange for loyalty. Australia has a score of 90 in this respect which reflects the highly individualistic culture (www.hofstede-insights.com 2019). It means that society is loosely knit where the people are expected to take care of themselves and their immediate families. In businesses, employees are self-reliant, and they take initiatives on their own. Moreover, promotion and hiring of personnel are based on merit.
Power distance
Masculinity
A masculine culture indicates that competition, success and achievements are the driving factors of the society. Best-in-the field defines the success in this society, and this value system is followed throughout the life span of a person. A feminine culture indicates that quality for life and care nature are the values dominant in society. In this type of societies, standing out is not admirable where the quality of life is considered success. Therefore, it identifies the motivation of the population in a society. The Australian score is 61 which implies that it is masculine society where people are taught to be competitive at work, play and school (www.hofstede-insights.com 2019). Moreover, people are proud of their successes, and the achievements of people determine promotion and hiring decisions at work.
Uncertainty Avoidance
This dimension determines the extent population within a culture feel vulnerable by the uncertainty in the future and developed institutions to avoid it. The Australian score on Uncertainty Avoidance is intermediate with a value of 51 (www.hofstede-insights.com 2019). It determines the population is less concerned about future uncertainties and focuses on the present while developing fewer strategies to control the future.
Long term orientation
This dimension highlights the way society tries to be attached to their past while dealing with the future and present challenges. The normative societies have a low score and prefer to hold on to their existing traditions, and societal changes are viewed with suspicion. On the contrary, the pragmatic societies encourage efforts in modern education so that the population is prepared for future changes. Australia has a score of 21 which defines that the country follows normative culture where the society has a deep concern for establishing the truth and have respect for traditions and less propensity to save (www.hofstede-insights.com 2019). It means that they are not oriented towards the future and tries to achieve quick results.
This dimension deals with the tendency of the people to control their impulses and desires, which depends on the values they have achieved from childhood. Indulgence is defined as weak control while string control is described as a restraint. Australia has a high score of 71 which shows a high degree of indulgence within the society (www.hofstede-insights.com 2019). It means that the populations are willing to realise their desires and impulses by enjoying life. Society and people are optimistic and have a positive attitude. They spend as they please and give high importance to leisure activities.
Individualism
This section analyses cultural dimensions in Thailand and provides a significant comparison with Australia to highlight the difference in culture.
Power distance
Thailand scores 64 on the power dimension index, which is slightly lower the average in Asia. It implies that inequalities within the society are accepted and hierarchy is highly prevalent in the industry (www.hofstede-insights.com 2019). It implies that society follows a strict protocol and chain of command. Moreover, hierarchy provides privileges and employees show deference, loyalty and respects to their supervisors for guidance and protection. The organisational has formal management, and there is control inflow of information concerning hierarchy. It is quite the opposite of the situation in Australia which means that employees working in an Australian organisation would not enjoy autonomy, and they would need to adapt to formal hierarchical structure prevalent in Thailand.
Individualism
The score of individuality is 20, which implies that collectivist society in Thailand (www.hofstede-insights.com 2019). It indicates that there is a commitment between groups consists of immediate family, extended family and other relationships. Loyalty is the most crucial aspect of a collectivist culture, which overrides other regulations and rules in society. The people do not like to confront each other which means their yes to any communication does not imply agreement and acceptance. A personal relationship is critical for performing business and relationships are developed through time and patience.
Masculinity
The score in this dimension is 34, which means that Thailand has a feminine society and masculinity ranking is lowest for Thailand concerning other countries in Asia and the global average (www.hofstede-insights.com 2019). It implies that society is less competitive and assertive where the population shows that there are more traditional approaches for the female and male role in society. It means that Australia follows a masculine culture, whereas Thailand follows a feminine culture. Therefore, the motivational factors for employees are different in both countries.
Uncertainty Avoidance
In terms of uncertainty avoidance, Thailand has an average score of 64, which shows that society is still oriented towards avoiding uncertainty. The society implements regulations, policies, laws and strict rules to avoid uncertainty. The primary purpose of the population is to implement strategies for controlling everything so that expected future can be avoided. It makes society risk-averse and rigid towards change. It implies that managers from Australia will face difficulties in implementing change in Thailand.
Long term orientation
Thailand score in long term orientation is 32, which means that the country follows a normative culture and avoids a pragmatic approach (www.hofstede-insights.com 2019). In this respect, the country is quite similar to Australia, and people want to establish the truth in society. Moreover, they show a high degree of respect for traditions and they have less propensity to save for the future.
Masculinity
Indulgence
The indulgence score of Thailand is 45, which shows that moderate and orientation can be determined (www.hofstede-insights.com 2019). It implies that the culture in Thailand is nether restraint or indulgent. This dimension is also different concerning Australia, but managers would not face any problems in this respect.
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Political |
Thailand has been experiencing political stability in recent times as Gen Prayut has been elected as the prime minister of the country by lower chamber and senate (bangkokpost.com 2019). However, the development of a new government will lead to the formation of new policies and practices which will significantly affect the business organisations and operations (bangkokpost.com 2019). However, a positive change is expected as the current is expected to implement strategies to make technological and infrastructural updates. |
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Economic |
The economy is dominated by the service industry, where the retail contributes majorly to the GDP. The GDP growth of the country from 2014 shows a steady decrease, but the military-controlled government has implemented policies to boost the investments and consumption of the economy (heritage.org 2019). However, trade freedom of the country is relatively high, and international trade is a crucial contributor to the growth of the economy. |
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Social |
The population is diverse, consisting of Thai, Chinese, Lao, Indian, Khmer and Mon. However, the majority of the population follows Buddhism. Society likes to hold on to their own traditional culture and are normative (Kim et al. 2017). There is an increase in economic disparity within the general; population where areas like Bangkok have experienced rapid growth and development. On the contrary, the suburbs have remained poor which has created disparity and marginalised the less developed region within the nation. |
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Technological |
The government has focused on improving research and development and made a holistic approach to promote them (Sukholthaman and Shirahada 2015). The funding and expenditure on research and development have increased significantly, but weak intellectual property rights is a concern. IPR protection has been highlighted as a vital issue in this nation |
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Legal |
In terms of the legal environment, the overall business environment is stable but there is a lack of robust labour rules and policies. There is a dire need to reform the existing labour laws for becoming competitive (bangkokpost.com 2019). The loopholes within the labour regulations are often used by employers to take advantage of the employees. |
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Environmental |
The government has been diligent in implementing policies to protect the species and forests within the country. Green building is a significant initiative taken by the government to protect the environment and improve the working conditions (Gazagne et al. 2018). On the contrary, the government has developed strict environmental protection laws for stopping the degradation of the natural environment. The country has implemented policies to mitigate issues such as deforestation, air pollution, burning of the forest, waste management and Fisheries. |
Table 1: Pestle analysis
Source: (Rastogi and Trivedi 2016)
The analysis of the given data shows that in respect to the case, the factor affecting the human resources are labour laws, social and cultural environment within the country. The labour laws within the country have loopholes and can be used to manipulate the labours union. Similarly, the country has levels of diversity, with the majority of the population being Thai and Chinese in origin. As per the social and cultural environment, society has its own deep-rooted culture and traditions which they are bound to follow. These factors are expected to have a significant impact on the overall work environment in the country.
The factors to be considered for staff relocation have highlighted below based on the analysis conducted on the external environment and the cultural difference between both the countries (Zhao et al. 2018):
- Equitable adjustment of compensation is the first factors to be considered for staff relocation as the employees will have to face an increase in expenses when they move to a new place. Soft Croc Pty Ltd will have to use a top relocation firm which would help the employees relocate smoothly to a new location.
- The company will also have to facilitate the sale of transferee’s existing home and pay them for finding new homes before relocating to that place. Identifying suitable housing locations and houses will be a crucial factor for staff relocation.
- Identifying the customised needs of the employees due to the diversity within the workforce is a critical factor to be considered for relocation. It means that the family background and their respective demographic scenario will have a significant impact on relocation strategies.
- The company will have to provide travelling and moving expenses to the employees so they can move without any hassle. It will help in reducing the financial burden on the employee.
- The company will also have to provide compensation for time off as the employee will require additional time to settle.
Soft Croc Pty Ltd will have to evaluate the family conditions and the current situation of each of the employees to understand the needs of their families. The company needs to identify the top firms that can help the employees to relocate to their new locations. It includes moving facilities, searching for new apartments and selling off their existing apartments (McNulty and De Cieri 2016). Moreover, the employees adequate training regarding the customs and culture in Thailand so that they can effectively communicate with the local employees and the people. This training will include training on the local customs and the traditions along with the local labour laws and policies. Moreover, the knowledge regarding the values and beliefs within the society is a necessity for working adequately along with the local employees and achieve highest level of productivity.
The working hours, weather conditions and food habits are quite different, which makes it even more difficult for the employees to adapt to the changing working conditions. The average number of working hours in Australia is quite less than in Thailand as Australia is a first world country (McNulty and Vance 2017). The average working hour in Thailand is higher than the average working hour in Australia so it would be difficult for them to adjust to these changes. Moreover, the company needs to provide full expenses and paid leaves for them to settle in the new working conditions.
Uncertainty avoidance
The personal situation plays a significant role while relocating to a different, especially when they are moving for the company. The company will have to be responsible and adequately support the employees for their smooth transition to a new environment. Firstly, Ben Fisher is a family man who has previous working experience in Asian countries such as Singapore so it would not be that difficult for him to adapt to the new environment. Moreover, his wife is also working as a manager in Sydney health care centre, but they have no kids. The company will have to consider the fact that Ben’s wife is also working; it would be difficult for her to leave her job and move to a new place. The company will have to help her wife in providing an adequate job in Thailand, but it has to be of the same stature.
On the contrary, the situation is different for Anita Shrestha as her family consists of her husband and two kids. Moreover, she does not have prior experience of working in Asian countries but she being from Nepal would help her in understanding the traditions in Thailand. Moreover, the culture in Nepal is quite similar to Thailand, so it will be much easier for her to cope. In her case, relocation of her kids and husband is more important as the company will need to provide the husband with similar jobs. On the other hand, relocation of the kids is the most important as they need to be admitted to proper schools and find a housing area that should be easier for the family to accommodate and sustain. However, Anita will have to be trained regarding working in Asian countries as she being Asian has never worked in Asia. Moreover, the company will have to provide her with additional time so that the family can settle down which includes setting up their house, identifying key market areas, understanding transportation facilitates and essential international schools suitable for the kids.
Conclusion
The analysis of the report has highlighted the role of the personal condition to be an essential aspect of employee relocation. Moreover, the difference in culture in two countries makes it highly difficult for the employees to adapt and relocate. Therefore, organisations should provide adequate support to make the transition smooth and look after the welfare of their respective families.
References
www.hofstede-insights.com 2019. Country Comparison – Hofstede Insights. [online] Hofstede Insights. Available at: https://www.hofstede-insights.com/country-comparison/australia,thailand/ [Accessed 17 Oct. 2019].
bangkokpost.com 2019. Thailand has political stability, Prayut says. [online] https://www.bangkokpost.com. Available at: https://www.bangkokpost.com/thailand/politics/1699380/thailand-has-political-stability-prayut-says [Accessed 18 Oct. 2019].
heritage.org 2019. Thailand Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. [online] Heritage.org. Available at: https://www.heritage.org/index/country/thailand [Accessed 18 Oct. 2019].
Kim, C.S., Smith, J.F., Suwannatrai, A., Echaubard, P., Wilcox, B., Kaewkes, S., Sithithaworn, P. and Sripa, B., 2017. Role of socio-cultural and economic factors in cyprinid fish distribution networks and consumption in Lawa Lake region, Northeast Thailand: Novel perspectives on Opisthorchis viverrini transmission dynamics. Acta tropica, 170, pp.85-94.
Sukholthaman, P. and Shirahada, K., 2015. Technological challenges for effective development towards sustainable waste management in developing countries: Case study of Bangkok, Thailand. Technology in Society, 43, pp.231-239.
Gazagne, E., Hambuckers, A., Savini, T. and Huynen, M.C., 2018. Surviving in a degraded forest environment: foraging strategies and space use of northern pigtailed macaques (Macaca leonina) in Sakaerat Biosphere reserve, Northeastern Thailand.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), pp.384-388.
Zhao, M., Li, X., Yin, J., Cui, J., Yang, L. and An, S., 2018. An integrated framework for electric vehicle rebalancing and staff relocation in one-way carsharing systems: Model formulation and Lagrangian relaxation-based solution approach. Transportation Research Part B: Methodological, 117, pp.542-572.
McNulty, Y. and De Cieri, H., 2016. Linking global mobility and global talent management: The role of ROI. Employee Relations, 38(1), pp.8-30.
McNulty, Y. and Vance, C.M., 2017. Dynamic global careers: A new conceptualization of expatriate career paths. Personnel Review, 46(2), pp.205-221.
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