International Human Resource Management Report

5 How Individualism versus Collectivism relates to the Case Study…………………. 6 Recommendation on how to address the issues………………………………………7 Conclusion……………………………………………………………………………8 Bibliography…………………………………………………………………………. 10 Executive Summary The purpose of the report is to analyse a case study about an Australian company that expanded its operations to New Zealand, and then later to Indonesia. The company continued practicing its human resource practices and policies of rewarding employees individually, but the move did not work well according to plan in Indonesia. The report, therefore, relies on Hofstede’s cultural dimension of individualistic versus collectivism to build a case to show why the practices and policies failed in Indonesia. Hofstede’s Six Dimensional Cultures Hofstede studied employees of IBM in more than 50 countries. He started by coming up with four elements that could differentiate one civilization to the other.

Afterwards, together with Michael Minkov and Michael Bonded, they expanded the list to a final group of six dimensions. The list includes the indulgence versus restraint power distance index, normative versus pragmatic index, uncertainty avoidance index, individualism versus collectivism, and femininity versus masculinity index (Pu, 2010). A country’s heritage has been proven to have an impression on business operations, from group performance to capital composition. They value creativity and individual choice and are free to take risks. People from high uncertainty cultures like Germany, Poland, Mediterranean cultures, and some Asian countries tend to have a higher need for formal structures, standards, and rules. Individualism versus Collectivism (IDV) Displayed in the Case study From the case study, the primary problem mentioned is that the organization’s HR policy of rewarding outstanding performance by individuals appears to have had a negative impact on team performance and cohesion (Eringa et al.

Therefore, as the external consultant, I would first outline that the problem the company was facing abroad directly relates to one of Hofstede’s cultural dimension, which is individualism versus collectivism. The individualism cultural dimension is the fondness of employees to associate themselves with a negligently bonded society, where the value is attached to working independently. Indonesia’s workgroup is made of large units, and employees seem to hold themselves accountable for each other’s welfare. Some countries, in this case, Indonesia, has a very low IDV score, with various meanings (Hutnek, 2016). First is the emphasis on maintaining harmony among group members, working for natural rewards, and building skills, which outweighs other ethical concerns. Therefore, the culture practiced in Indonesia teaches its employees on tips that foster group performance, and suppress individualistic tendencies.

For example, employees are expected to avoid negative feedback in public, possess wisdom, and hide emotions and feeling that may cause chaos in the group (Frank, Enkawa, & Schvaneveldt, 2015). Alternatively, reward-motivated employees initially responded well to these awards by cutting down on laxity and carelessness. After the scheme had been practiced for some time, these individuals reverted to their old habits if they discovered that they were ineligible for any rewards during a specific period (Huang, 2015). Rewarding individuals in Indonesia seems to have only motivated those employees eligible for bonuses. Recommendation on how to address the issues The problem will only be solved if the company tried to reward their employees as a group. Employees in Indonesia seem to value collectivism and equality and care a lot about how they are perceived relative to others in the organization (Ladley, Wilkinson, & Young, 2015).

The above perspective is precisely in contrast to a humanistic approach to human value that believes that all people have an intrinsic value in any context. It is, therefore, time that multinational companies looked into the fact that their employee-recognition program may be doing them more harm than good. The most important point is that managers have to harness and capture cultural psychology that is sharply rooted in the human reasoning. The simplicity linked to the way people classify the endemic world into groups communicates to our essence and offers a formidable potential instrument for trailblazers. The ability to associate with groups provides the basis for partnerships with colleagues, including total outsiders. R. , & Stefanescuc, D. Hofstede's Cultural Dimensions and Student's Ability to Develop an Entrepreneurial Spirit.