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Intercultural Values Johanna Burger, Daniel Köth

Intercultural Values Johanna Burger, Daniel Köth Seminar „State of the Art der Organisationspsychologie“ Dr. Sebastian Schuh SS 2012. Agenda. 1.) Theoretical Background 2.) Hofstede 3.) Meta-Analysis 4.) Job Embeddedness - Study 5 .) Discussion. Introduction – Culture is ….

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Intercultural Values Johanna Burger, Daniel Köth

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  1. Intercultural Values Johanna Burger, Daniel Köth Seminar „State ofthe Art der Organisationspsychologie“ Dr. Sebastian Schuh SS 2012 State ofthe Art – Cultural Values

  2. Agenda • 1.) Theoretical Background • 2.) Hofstede • 3.) Meta-Analysis • 4.) Job Embeddedness - Study • 5.) Discussion State ofthe Art – Cultural Values

  3. Introduction – Culture is… State ofthe Art – Cultural Values

  4. Introduction Culture is „thecollectiveprogrammingofthemindwhichdistinguishesthemembersofone human groupfromanother“ - Hofstede, 1980 State ofthe Art – Cultural Values

  5. View back! • Personality: • Influences of personality, general mental ability […] and education on income. • Connection between gender, performance and CSE • Attitudes: • Job-satisfaction, performance and attitudes • Discussion: „generalizability for other countries is questionable“ • Emotions: • Study with 95 percent caucasians • The question is: Can the results of all these studies be generalized to • people all over the world regardless of where they live? State ofthe Art – Cultural Values

  6. Hofstede’s Cultural Dimensions (1980) „Culture’s Consequences: International Differences in Work-related Values.“ (Hofstede, 1980) Published in: Beverly Hills, CA: Sage. State ofthe Art – Cultural Values

  7. Hofstede‘sculturalvaluedimensions (1980) • Hofstedecollected data from over 88.000 IBM employees in 72 countries. • Employee Attitude Survey • Emotions • Perceptions & attitudes • Behaviors • Job performance • He used the results to cluster the countries via explanatory factor analysis. State ofthe Art – Cultural Values

  8. Hofstede‘sculturalvaluedimensions (1980) • He identified four cultural value dimensions • - Individualism / collectivism (IC) • - Power distance (PD) • - Uncertainty avoidance (UA) • - Masculinity / femininity (MF) • (A fifth dimension was added later in 1991 based on research by Bond • - Short-term- / long-term orientation) State ofthe Art – Cultural Values

  9. Individualism / Collectivism (IC) Definition by Hofstede (1980): “the degree to which people in a country prefer to act as individuals rather than as members of a group“ Individualism - “I“ - independance - self-reliance Collectivism - „we“ - community - socialframework - mutual support - loyalty State ofthe Art – Cultural Values

  10. Power Distance (PD) Definition: „theextendtowhich a societyacceptsthefactthat power in institutionsandorganizationsisdistributedunequally“ Low power distance - equality - decentralization - co-determination High power distance - hierarchy - control - definedroles State ofthe Art – Cultural Values

  11. UncertaintyAvoidance (UA) Definition: „the extend to which a society feels threatened by uncertain and ambiguous situations and tries to avoid these situations by providing greater career stability, establishing more formal rules, not tollerating deviant ideas and behaviors and believing in absolute truths and the attainment of expertise“ Low uncertaintyavoidance - „just letit happen“ - toleranceforunexpectedevents - acceptanceofchange - pragmatic High uncertaintyavoidance - „trytocontrolthefuture“ - principles - rigid codesofbehavior - plans & routines State ofthe Art – Cultural Values

  12. Masculinity / Femininity (MF) Definition: masculinity is “the extend to which the dominant values in society are ‘masculine‘ – that is assertiveness [and] the acquisition of money and things” whereas femininity refers to ‘feminine’ values such as a preference for “friendly atmosphere, position, security, physical conditions [and] cooperation” Masculinity - competition - achievement - success - „tobethebest“ Femininity - care - relationship - satisfaction - „tolikewhatyou do“ State ofthe Art – Cultural Values

  13. Didyougetit? UncertaintyAvoidance Power Distance Masculinity Individualism State ofthe Art – Cultural Values

  14. Meta-Analytic Review of Hofstede’s Cultural Dimensions „Culture’s Consequences: A Three-Decade, Multilevel, Meta-Analytic Review of Hofstede’s Cultural Value Dimensions“ (Taras, Kirkman & Steel, 2010) Published in: Journal of Applied Psychology, Vol.95, No.3, 405-439 State ofthe Art – Cultural Values

  15. What‘sit all about? • The relation of Hofstede‘s cultural dimensions with „organizational relevant outcomes“ was investigated in a meta-analysis. • A total of over 40 “outcome”-variables was analyzed. They can be divided into four main groups: • Emotions • Attitudes & Perceptions • Behavior • Job Performance State ofthe Art – Cultural Values

  16. What‘sit all about? • What was investigated? • Possible Moderators • Demographics • Personalitytraits • Mental ability • Hofstede‘sfourculturaldimensions • Individualism/Collectivism • Power distance • Uncertaintyavoidance • Masculinity/Femininity • „organizational relevant outcomes“ • Emotions • Attitudes & perceptions • Behaviors • Job performance Predictive power State ofthe Art – Cultural Values

  17. The meta-analysis • Meta-Analysis of 598 out of over 1000 published and unpublished studies concerning cultural dimensions from 1980 to 2009 • Only studies with definitionssimilartoHofstede‘swereincludedtoguaranteecomparability • Correlationswereweightedandaveragedaccordingto sample sizesandcorrectedforunreliability State ofthe Art – Cultural Values

  18. Research Question 1 • Q1: Do thefourdimensions (individualism/collectivism, power distance, uncertaintyavoidanceandmasculinity/femininity) differsignificantly in theiramountofpredictive power? Predictive power a Individualism/collectivism • „organizational relevant outcomes“ • Emotions • Attitudes & perceptions • Behaviors • Job performance b Power distance c Uncertaintyavoidance d Masculinity/femininity Camparisonbetween a, b, c and d State ofthe Art – Cultural Values

  19. Research Question1 – Results • Q1: Do thefourdimensions (individualism/collectivism, power distance, uncertaintyavoidanceandmasculinity/femininity) differsignificantly in theiramountofpredictive power? • Results (Q1): • Nosignificantdifferencesbetweenthefourdimensions. • The differencesincreaseathigherlevelsofanalysis (levelofaggregation) State ofthe Art – Cultural Values

  20. Research Question 2 • Q2: Do Hofstede‘sculturalvalueshavesignificantly different predictive power on organizationally relevant outcomes (i.e. emotions, attitudes & perceptions, behaviorsandjobperformance) thanotherpredictors (i.e. demographics, personalitytraits, mental ability)? Predictive power Hofstede‘sculturevalues a • „organizational relevant outcomes“ • Emotions • Attitudes & perceptions • Behaviors • Job performance b Demographics c Personalitytraits d Mental ability Comparisonbetween a, b, c and d State ofthe Art – Cultural Values

  21. Research Question 2 – Results • Q2: Do Hofstede‘sculturalvalueshavesignificantly different predictive power on organizationally relevant outcomes (i.e. emotions, attitudes & perceptions, behaviorsandjobperformance) thanotherpredictors (i.e. demographics, personalitytraits, mental ability)? • Results (Q2): mixedresults • Overall: mental ability > culturevalues > personality > demographics • Emotions: culturevalues > personality* > demographics > mental ability • Attitudes& perceptions: culturevalues > personality* > demographics > mental ability • Behaviors: mental ability > culturevalues > personality* > demographics • Performance: mental ability > demographics > personality > culturevalues * conscientiousness > culturevalues ** neuroticism > culturevalues State ofthe Art – Cultural Values

  22. Moderator effects • Comparisonbetweenthepredicitive power ofthefourculturalvaluesdepending on the type ofoutcome. Predictive power • Hofstede‘sfourculturaldimensions • Individualism/Collectivism • Power distance • Uncertaintyavoidance • Masculinity/Femininity a emotions b Attitudes & perceptions c Behaviors d Job performance Comparisonbetween a, b, c and d State ofthe Art – Cultural Values

  23. Moderator effects – Results • H1: The predictive power ofthefourdimensions will bestrongestforemotions, followedbyattitudesandperceptions, thenbehaviorsandfinallyjobperformance. • H1: significant • thepredictive power ofculturalvaluesishighestforemotionsfollowedbyattitudesandperceptions, behaviorsandjobperformance. • emotions> attitudes & perceptions > behaviors > jobperformance State ofthe Art – Cultural Values

  24. Moderator effects • H2a-d: Comparisonbetweenthepredicitive power ofHofstede‘sfourculturalvalues on organizational relevant outcomesdepending on age, status, genderandeducation. • younger vs. older • employees & managers vs. students • women vs. men • shorter vs. longereducation State ofthe Art – Cultural Values

  25. Moderator effects – Results • H2a-d: Comparisonbetweenthepredicitive power ofHofstede‘sfourculturalvalues on organizational relevant outcomesdepending on age, status, genderandeducation. • younger < older • employees & managers > students • women < men • shorter < longereducation State ofthe Art – Cultural Values

  26. Now it’s your turn! Yourtask: Discussin groupsandthinkofimplicationsthis meta-analysis mighthaveforfurtherresearch. Whatproblemscanyouthinkof? Keep these in mind, we‘llneedthemlater! State ofthe Art – Cultural Values

  27. Will they stay or will they go? „Will They Stay or Will They Go? The Role of Job Embeddedness in Predicting Turnover in Individualistic and Collectivistic Cultures“ (Ramesh & Gelfand, 2010) Published in: Journal of Applied Psychology, Vol.95, No.5, 807-823 State ofthe Art – Cultural Values

  28. EmployeeTurnover – what‘sthetheory? • “Why do people leave? And why do they stay?” • Understanding employee turnover • Turnover = Intention or action to leave an organization • Earlier turnover models focused on: • Job attitudes • Job Satisfaction • = the pleasurable emotional state resulting • from the appraisal of one'sjob(Locke, 1969) • Organizational Commitment • = strength of an individual's identification with • and involvement in a particular organization • (Porter at al., 1974) • Ease of movement • Perceived alternatives • Job search behavior Explain about 4-5 % of variance in turnover at best (for a meta-analysis see Griffeth et al., 2000) State ofthe Art – Cultural Values

  29. Job Embeddedness – what‘sthetheory? • Job Embeddedness (Mitchell, Holtom, Lee, Sablynski & Erez, 2001) • Added nonwork-factors and further organization-focused predictors • 3 aspects of job embeddedness – both on and off the job • Links • “Formal or informal connections” (p.1104) between person and • The organization • The community • Fits • “Employee’s perceived compatibility or comfort” (p.1104) with • The organization • The community • Sacrifice • Perceived cost of material or psychological benefits when leaving • The organization • The community State ofthe Art – Cultural Values

  30. Present Study – what‘snew? • Facts: • 1955 - First study on turnover • Since then: 1500 studies on turnover • Almost all research on job embeddedness was conducted in US or UK • Only a few studies on intercultural comparison of turnover models • Present study: first to compare turnover predictors in Western and non-Western countries • Research questions: • 1st) “Does the job embeddedness model have applicability in a collectivistic culture?” • 2nd) “Are the relationships between the six dimensions of job embeddedness and turnover • different in the US and India? State ofthe Art – Cultural Values

  31. Hypotheses 1st) “Does the job embeddedness model have applicability in a collectivistic culture?” Job Embeddedness: Hypothesis 1: Organization Embeddedness will predict turnover over and above specified control constructs in the US and India. Hypothesis 2: H2: Community Embeddedness will predict turnover over and above specified control constructs in the US and India. State ofthe Art – Cultural Values

  32. Hypotheses 2nd) “Are the relationships between the six dimensions of job embeddedness and turnover different in the US and India?” What do you think? Sacrifice: Hypothesis: The relationship between organizational and community sacrifice will be stronger for India than for the US. State ofthe Art – Cultural Values

  33. Method • Sample: • Data collection from call centers in US and India • US: 3 organizations – 486 employees invited – 323 complete surveys • India: 3 locations of the same organization – 629 employees invited – 474 complete surveys • Procedure: • Online survey • Company executives introduced the study to employees initially via email • Participants were invited to take part in survey about “employee attitudes” • Participants were offered the chance to win a gift card (incentive) • Organizations had no access to individual data • After six months: turnover data of participants were obtained State ofthe Art – Cultural Values

  34. Method • Measures: • Predictors: • Job Embeddedness Scale (Mitchel et al., 2001)* • 18-item scale for organization embeddedness (α =.85 for US, .83 forIndia) • 13-item scaleforcommunity embeddedness (α=.82 forUS, .82 forIndia) State ofthe Art – Cultural Values

  35. Method • Measures: • Control Variables: • Organizationalcommitment • Job satisfaction • Job alternatives • Job searchbehavior • Externalprestige • Dependent variable: • Turnover • List of all factual voluntary turnovers after six moths State ofthe Art – Cultural Values

  36. Results 1st) “Does the job embeddedness model have applicability in a collectivistic culture?” Job Embeddedness: Hypothesis 1: Organization Embeddedness will predict turnover over and above specified control constructs in the US and India. Hypothesis 2: H2: Community Embeddedness will predict turnover over and above specified control constructs in the US and India. State ofthe Art – Cultural Values

  37. Results 2nd) “Are the relationships between the six dimensions of job embeddedness and turnover different in the US and India?” Sacrifice: Hypothesis: The relationship between organizational and community sacrifice will be stronger for India than for the US. *1 partially supported State ofthe Art – Cultural Values

  38. Discussion • Practical implications: • What do you think? • What the authors thought: • Interventions targeting different dimensions of job embeddedness need to be adapted to different cultures • For India: structured interviews to assess person-organization fit • For US: hire persons that fit the job or educate employees to perceive their job fit • For both, but especially for India: build work teams, recruit in teams, mentor system • Allowing employees time for volunteering in community, support local housing • „Bring your child to work!“ State ofthe Art – Cultural Values

  39. Discussion • Limitations: • What the authors thought: • Only two countries compared • Assessing other industries • What do you think? State ofthe Art – Cultural Values

  40. Think back. Think ofwhatyoudiscussedearlier. Howcanyourthoughtsandideasbeappliedtothisstudy? State ofthe Art – Cultural Values

  41. Vielen Dank für Ihre Aufmerksamkeit! Effekte von Machtgewinn und Machtverlust

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