Refining CPI results based on Hofstede's cultural models in analizyng human resources profiles.

Nica, Gabriela Beatrice ; Dumitrescu, Diana Mariana ; Aurite, Traian 等

1. INTRODUCTION

In our days globalization implies deep integration and interconnectedness, networks of relationships between a large number of heterogeneous social, cultural, political and economic organizations. In this context, the human resources different costs at the same qualification determined a lot of enterprises to coagulate networks in order to coordinate their competences with partners from other countries in order to share their skills and resources, for an integrated project. Such virtual enterprise architectures started to act like multinational enterprises and as a consequence borrowed their organizational models.

Alliances or networks allow many of the advantages of internalization without the inflexibility, bureaucratic or risk-related costs associated with it. The literature typically brings forward descriptive models of different stages/phases in the development of a multinational organization. One of the most prominent such phase models is that provided by (Perlmutter, 1969). This makes a distinction between 4 types of multinational enterprises: ethnocentric, polycentric, regiocentric and geocentric enterprises. Among these we will made reference to ethnocentric like view a traditional enterprise and at antipode geocentric like view a virtual enterprise.

The concept of a VE has been defined as "a temporary consortium of autonomous, diverse and possibly geographically dispersed organizations that pool their resources to meet short-term objectives and exploit fast-changing market trends" (Davulcu et all, 1999). The virtual enterprise is similarly a high degree of international coordination on production, but where there is a greater degree of independence observable across branch companies. The heads of the branch companies enjoy greater autonomy and decision-taking is more horizontal, tending to be carried out among branch managers. Management by process is emphasized as well as the increased need for communication between the management of the different branches (fig. 2). What we learned in both settings, traditional and virtual enterprise, is that managerial competence to rapidly change the cooperative organizational arrangement from within must be backed by the cooperative culture of the partners (Katzy & Miralles, 2005).

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The model of traditional company derive from the fact that the management is based on strictly one nation's set of criteria, that is, the country of origin of the corporation. Identity is mediated through the values, language and higher management of the same national derivation, found in the mother company and at the higher levels of the different branches of the corporation. It is an asymmetrical regime in which general company policy is planned from the centre, from whence the implementation of the different branches is monitored. The company's decision taking is thus controlled by the mother company and a group of managers of the same nationality. The ethnocentric enterprise in contrast, essentially extends headquarters ways of doing business to its foreign affiliates. Essentially this type of enterprise is interested in internalizing monopolistic advantages gained in home countries to include foreign locations. Controls are highly centralized and the organization and technology implemented in foreign locations will essentially be the same as in the home country (fig. 1).

This paper concentrates on one part of organizational culture in accord to Hofstede's model, as a potentially malleable target of managerial intervention and the different of Western and Eastern Culture superimpose over the traditional and virtual enterprises.

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In a virtual enterprise, influencing beliefs and promoting values may be especially challenging.

2. CPI AND HOFSTEDE'S CULTURAL MODEL

Geert Hofstede defines culture as being collective but often intangible. It is, however, what distinguishes one group, organization or nation from another. In Hofstede's view, culture is made up of two main elements: the internal values of culture--which are invisible--and external elements of culture--which are more visible- and are known as practices. The latter include rituals, heroes and symbols (Hofstede, 2001). The cultures of different organisations can be distinguished from one other by their practices, while national cultures can be differentiated by their values. Geert Hofstede has found five dimensions of culture in his study of national work related values, wherefore our interest pitch upon the two dimensions (fig. 3):

* Small vs. Large Power Distance--the extent to which the less powerful members of institutions and organizations expect and accept that power is distributed unequally. Small power distance (e.g. Austria, Denmark) expect and accept power relations that are more consultative or democratic. In large power distance countries (e.g. China) less powerful accept power relations that are more autocratic and paternalistic. Subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions

* Individualism vs. collectivism--individualism is contrasted with collectivism, and refers to the extent to which people are expected to stand up for themselves and to choose their own affiliations, or alternatively act predominantly as a member of a life-long group or organization. Latin American cultures rank among the most collectivist in this category, while the U.S.A. is one of the most individualistic cultures.

Power distance is defined by Hofstede as "the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed inequality".

We can make a parallel between Hofstede's models presented in this paper: power of distance and individual vs. collectivism with traditional vs. virtual enterprise. The traditional enterprise acts like a cultural model with small power of distance and collectivism and the virtual enterprise acts like a large power of distance and individualism.

For analyzing the requirements in traditional and virtual enterprises based on Hofstede's cultural model we had used CPI inventory, selecting what we consider to be the most important profiles. We applied California Psychological Inventory at a number of 86 students (42 female students and 44 male students).From the 18 scales of CPI, 10 were selected (Do, Cs, Re, So, Sc, To, Ai, Ie, Py and Fx) as the most relevant to the specific post requirements. The test results for the other 8 scales were related with the other 10 (considerate with a lower weight in the final appreciation) in order to allow a complex interpretation of the profiles.

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3. CONCLUSIONS

The purpose of the testing was to select the persons with the best psychological profile for specific requirements demanded by virtual and traditional enterprises based on Hofstede's model (power distance and individuality vs. collectivism)

From 86 postulants only 10 obtained satisfying results for the specific requirements in accord with Hofstede's cultural model and traditional vs. virtual enterprise particularities.

The first profile selected (fig. 4) responds to requirements for the traditional enterprise and the second profile (fig. 5) for the virtual enterprise.

In our future research we will adapt the three others Hofstede's cultural models to the requirements of the virtual enterprise according to CPI scales.

4. REFERRING

Davulcu, H.; Kifer, M.; Pokorny, L. R.; Ramakrishnan, C.R.; Ramakrishnan, I. V. & Dawson, S. (1999). Modelling and Analysis of Interactions in Virtual Enterprises. In Proceedings of the Workshop on Research Issues in Data Engineering--Information Technology for Virtual Enterprises (RIDE-VE'99), pp.12-18, ISBN 0-7695-01192, Sydney, Australia

Katzy, B. R. & Miralles, F. (2005). The Virtual Enterprise Thriving on Turbulent Change, Available from: http://portal.cetim.org Accessed: 2005-04-19

Hofstede, G. (2001). Culture's consequences: comparing values, behaviors, institutions and organizations across nations, ISBN 0-8039-7324-1, 2nd Edition, London Gough, H. & McAllister, L. (2004). Configural analysis report an interpretation of scale combinations, Available from: http://www.acer.edu.au/articles/pdf, Accessed: 2009-05-20.

Perlmutter, H. V. (1969). The Tortuous Evolution of the Multinational Corporation, Columbia Journal of World Business, Vol. 4, pp. 9-18