This Document Contains Chapters 12 to 14 Chapter 12 Labor Relations A. OVERVIEW This chapter outlines the current state of labor relations, especially from the unionmanagement perspective. Union certification and decertification processes are discussed in detail. Globalization, new technology, and changes in the nature of work have all led to substantial declines in union activity and representation in the U.S. over the last several decades. This pattern is expected to continue. The importance of developing a modern model to advance the union-management relationship is presented, along with desirable characteristics unions must possess in order to thrive - or even survive. B. LECTURE OUTLINE I. OPENING CASE - NEW YORK METROPOLITAN TRANSIT AUTHORITY In December 2005 the 34,000 worker MTA of New York City went on strike, crippling the city, particularly its lower income residents. Broken-down negotiations over a new contract due to retirement/pension contributions and wage increases resulted in a 60 hour strike which affected public and private schools, public safety and retail shopping during the week before Christmas. The strike was illegal under New York state law and resulted in fine and a jail sentence for the president of the local union. II. INTRODUCTION The nature of the employee-employer relationship can have substantial impact on morale, motivation and productivity. The relationship with unionized workers is more formal due to a contract, as well as special provisions of the National Labor Relations Act. Managers may not form or join unions. Union membership in the U.S. has steadily declined over the last few decades. 30% of the private workforce was unionized in 1970, but only 13.9% were in 1999. This percentage decreased to 11.3% by 2013. Government employees are five times more likely to be union members than were private sector employees (36% versus 6.6%). Declines in union membership can be attributed to: 1. Workers becoming disenfranchised with their unions. 2. Movement of manufacturing and assembly jobs to outside the U.S. 3. Changes in the nature of work and technology that have eliminated many traditional manual labor jobs. 4. Unions have often refused to be flexible enough to allow organizational growth and adaptation to changing industries and environments. Understanding organized labor relations can be helpful because 1) union activity is the norm is some industries; 2) settlements of unionized competitors may impact your practices and policies; and 3) workers still have the right to unionize if they want to. Organized labor presents several key challenges for management, including: 1) shifts in power bases in unionized organizations; 2) union representatives become outside players who must buy in to management initiatives; and 3) higher organizational cost structure. III. WHY EMPLOYEES UNIONIZE Employees join unions is search of perceived benefits, including: 1. Economic - higher wages negotiated; expanded benefits; greater job security; improved working hours or conditions. 2. Social - affiliation and a sense of community. 3. Political - ability to speak as one voice; equalizes balance of power. IV. THE NATIONAL LABOR RELATIONS ACT (NLRA) NLRA, or Wagner Act, was passed in 1935 to provide employees the right to unionize and to regulate union management relationships. The National Labor Relations Board administers the Act. Steps toward unionization include: 1. Petition NLRB for an election by presenting authorization cards signed by at least 30% of employees expressing interest in having specific union representation. 2. Establishment of the bargaining unit 3. Election conducted, with majority of votes wins. V. BEHAVIOR DURING ORGANIZING CAMPAIGNS Behavior of management and the union are regulated by NLRA to ensure fairness in communicating their positions to employees. Specific unfair labor practices are outlined, and acceptable communication patterns from union to employee of management to employee have been established. Unions can be decertified by membership (at least one year after certification) in the same fashion as certification. VI. COLLECTIVE BARGAINING When employees are covered by a union contract, the collective bargaining agreement covering various terms and conditions of employment is negotiated by the union and the employer. Bargaining items are labeled mandatory, permissive or prohibited, see EXHIBIT 12.1: TYPES OF BARGAINING ITEMS. VII. FAILURE TO REACH AGREEMENT If the union and employer can not reach an agreement, workers have the right to strike, and the employer has the right to continue operations. Whether striking employees must be rehired depends on the nature of the strike: economic; unfair labor practices; wildcat strikes. Federal workers are prohibited from striking for any reason, thus workers have no right to return to their jobs. Strike activity may be prevented through the use of formal grievance procedures, or through the alternate dispute resolution (ADR) processes of mediation or arbitration. VIII. UNIONS TODAY Union activity and representation are on a steep decline in the U.S., and perhaps unions will not survive long-term if their traditionally adversarial relationship with employers continues. Unions must partner with employers to seek win-win collective bargaining outcomes. Political, negotiating and management skills are needed by union leaders, as well as the vision to understand strategic issues facing the employer and the organizational environment. Social media is having an increasing role in how union organizing campaigns develop which has garnered the interest and action of the NLRB. IX. CONCLUSION Unions have a long history in the U.S., although the changing nature of work, globalization and technology have greatly reduced their membership and effectiveness. Union leaders are challenged to create new models that address not only the impact of a changing environment on the organization, but also how union employees can help meet new challenges. Unions should not see themselves as adversaries to management, but as facilitators and consultants. READINGS Reading 12.1 -– Putting a Big Chill on a “Big Hurt:” Genuine Interest in Employment of Salts in Assessing Protection Under the National Labor Relations Act This article focuses on employer responses to the union organizing strategy known as “salting.” Salting involves union members applying for employment with an employer the union is trying to organize and then attempting to organize from within. The Supreme Court first ruled that this practice was not illegal under the NLRA, saying the applicants could not be discrimination against SOLELY on the basis of their status as a “salt.” Later a federal court found that union organizers could lie about their status as salts on job application as long as they did not misrepresent their credentials, skills or qualifications for employment. Employers then fought back through the use of preferential hiring criteria as a means of excluding salts from consideration for employment with success. In the latest case, the NLRB ruled that applicants, including salts, had to have a genuine interest in employment to be protected under the NLRA. The case however was decided by a very slim majority with a scathing dissent so it is likely that this issue will continue to present itself in organizing campaigns as unions fight for their livelihoods. Reading 12.2 – Social Media, Employee Privacy and Concerted Activity: Brave New World or Big Brother? The use of online social media by both employees and organizations has contributed to the further blurring of the separation between employees’ work and personal lives. Continuing a trend found with early e-mail monitoring by employers, a significant number of employers now monitor an increasing amount of the electronic communications and online activities of their employees both in and outside of the workplace. There are many reasons why employers engage such in monitoring; 1) to protect the employer from a variety of legal liabilities which could come about as the result of the content of such communications; 2) to determine the extent to which employees are actually doing their jobs during work hours and not engaging in distracting personal business; and 3) electronic media can be a means for disgruntled employees to transmit confidential files or provide access to secure parts of the employer’s website or intranet Despite the justifications for employer monitoring, there can be a significant downside to this activity. Employees can often view electronic monitoring by employers as an invasion of their privacy which serves to erode any trust relationship which exists between employees and employers. However, generally speaking, employer monitoring of employee communications is not only legal but also practical, given the nature and reach of electronic communications. To date, courts have consistently held that employees do not have any reasonable expectation of privacy regarding online communication, including internet usage and work e-mail systems. For employers, monitoring of employees’ social network activities by employers is easy and inexpensive. However, employers face an ethical question relative to whether, as part of due diligence in the hiring process, they should scour online networks and sources to discover information about prospective hires. Many employers are utilizing search engines and social media to discover information about job applicants and, in some cases, use this information to screen out applicants. Social network monitoring of existing employees can allow employers to monitor activities and discover personal information which may or may not be work-related. The ethical issue for employers is that much of which may be discovered online is not related to job performance and how is such information to be used once it is discovered. The American legal system has not kept up with the technological advances which have greatly altered how we communicate. Employees currently enjoy no specific privacy rights in their communications and very limited protection against employer monitoring and the possible consequences employers take in response to what they discover as part of any monitoring. Recently, however, the National Labor Relations Board has intervened on behalf of employees and their social media activities related to their employment. Section 7 of the National Labor Relations Act provides all covered employees the right to engage in “concerted activities for the purpose of collective bargaining or other mutual aid or protection.” It is critical however, that in order to receive protection that the employee’s actions or communications not simply be on her or his own behalf nor should the employee disparage the employer, display blatant insubordination or distribute or publicize confidential information to which the employee is privy. However, while the NLRB has been quick to intervene in such cases, no court has yet to rule on this interpretation Chapter 13 Employee Separation and Retention Management A. OVERVIEW This chapter summarizes issues related to employee separation. Reductions in force are common during organizational restructuring, and must be managed properly within the scope of the Workers Readjustment and Training Act of 1989, which regulates force reduction for many organizations. Both voluntary and involuntary turnover can be quite expensive, and often results in lost organizational assets associated with employee knowledge, skills and abilities. Mandatory retirement is generally forbidden in the U.S., except in certain circumstances associated with safety, etc. In sum, employee separation is a process that must be managed effectively from the strategic point of view, as employees are investments and assets of the organization and must be treated as such. B. LECTURE OUTLINE I. OPENING CASE - KRAFT Kraft Foods has developed a retention program to reduce turnover (previously at 20% annually) and keep highly sought after information technology (IT) employees. Internships with rigorous performance outcomes are often used as recruitment tools, with a 70% acceptance rate for interns offered employment. Retention of IT employees has been successful at Kraft for a number of reasons, including: technical or managerial tracks are present for career development; IT workers spend 10 days per year purely on career development; IT Leadership Program matches junior and senior IT workers; a sense of family found at work; Kraft responds to the needs of younger workers by providing flexible hours, telecommuting, part-time options; casual dress code, on-site health club, etc. II. INTRODUCTION Organizations today must be flexible and responsive to their environments in order to appropriately respond to employee separation and retention issues. An effective HR strategy involves managing the process by which employees leave the organization. III. REDUCTIONS IN FORCE A. Workers Readjustment and Training Act (WARN) of 1989 requires employers with 100+ employees to provide employees involved in a reduction of force effort a minimum 60 days notice of facility closing or large scale layoffs of 50+ workers. 1. Does not apply to federal, state or local government agencies; faltering companies; unforeseeable circumstances; natural disasters; and temporary facilities when workers have been properly informed. B. Organizations reduce their workforce for three main reasons, including: inefficiency; lack of adaptability to the marketplace; weakened competitive position. Layoffs can sometimes be avoided through proper planning to ensure supply and demand are equated, thus reducing severance costs. Related issues include: 1. Regularly staffing at less than 100%, then utilizing temporary workers or paying overtime eliminates short term swings. See Layoffs at Kodak example. 2. Retained workers must be managed effectively, as morale and loyalty may drop, even among retained workers who may feel less secure. 3. Hiring freezes, attrition and early retirements are useful here. 4. Tying a greater portion of compensation to performance is popular. C. Exhibit 13.1 presents a variety of strategies for management employee surpluses and avoiding layoffs. See Strategic Downsizing at Charles Schwab example. Exhibit 13.2 presents a framework of strategic cost-reduction strategies designed to minimize, defer or avoid layoffs or reductions-in-force. IV. TURNOVER A. Voluntary turnover rates have been found to average 21% annually for employers with 1,000 employees and over 26% for employers with 5,000 employees. B. Turnover costs can be astronomical: Merck and Co. reports turnover costs of 150-200% of annual salary; Sears reports turnover costs of 17% of operating income. C. Turnover can be beneficial as it allows organizations to: hire employees with more current training; lower the average worker tenure and payroll costs; permit promotion of high performers; and improve morale with the separation of poor performers. D. EXHIBIT 13.3: THE PERFORMANCE-REPLACEABILITY STRATEGY MATRIX presents a framework for classifying individual employee turnover based on individual performance level and difficulty associated with replacing the individual. E. EXHIBIT 13.4: STRATEGIC MANAGEMENT OF TURNOVER AND RETENTION presents strategies for strategically managing the different types of turnover. F. See Managing Retention at Sprint PCS example; Strategic Retention at United Airlines and Retaining Talent at Intel examples. V. RETIREMENT A. Age Discrimination in Employment Act of 1967 prohibits mandatory retirement, except for certain circumstances that involve safety, etc. B. Older workers today are healthier for longer periods, and may wish to stay employed. However, older workers can resist change; be difficult to motivate; have lower productivity. Older workers often hold senior positions, so their retirement can open positions for promotion. C. Working through retirement years is expected by 80% of baby boomers, with 7% of workers now over 65 years old. D. Phased retirements and incentives to retire are strategic options that can be beneficial to both employees and employers. VI. ALUMNI RELATIONS Increasing numbers of employers are maintaining good relationships and communicating with former employees. Such alumni are potential customers and referral sources for both new business and new employees. The proliferation of online professional alumni networks has aided this process. See Alumni Relations at Ernst & Young example. VII. CONCLUSION Employee separations must be strategically managed, and not handled in a piecemeal way. Effective retirement and separation management can help an organization maintain a competitive advantage, as well as the means of retaining knowledge, expertise, experience, loyalty and positive role models while permitting infusion of new ideas and energy. Employee separation involves relinquishing potentially valuable organizational assets, thus separation entails valuing human assets from the investment perspective, including disposal costs. Management of the separation process is critical to strategic management of organizational assets. READINGS Reading 13.1 – Retaining Talent: Replacing Misconceptions with Evidence- Based Strategies This reading addresses a number of misconceptions about employee turnover by refuting these points with evidence-based data and recommendations for his best to manage employee turnover. Table 1 presents five common misconceptions about turnover with the evidence that challenges these claims Figure 1 presents a conceptual model to apply evidence-based guidelines to turnover and retention management. Table 3 presents a variety of HR strategies that can used to better management turnover, specifically reducing detrimental voluntary turnover. These strategies are presented below. Recruitment • Providing a realistic job preview (RJP) during recruitment improves retention. • Employees hired through employee referrals tend to have better retention than those hired through other recruitment sources. Selection • Biodata (biographical data) and weighted application blanks (WAB) can be used during the selection process to predict who is most likely to quit. • Assessing fit with the organization and job during selection improves subsequent retention. Socialization • Involve experienced organization insiders as role models, mentors, or trainers. • Provide new hires with positive feedback as they adapt. • Structure orientation activities so that groups of new hires experience them together. • Provide clear information about the stages of the socialization process. Training and Development • Offering training and development opportunities generally decreases the desire to leave; this may be particularly critical in certain jobs that require constant skills updating. • Organizations concerned about losing employees by making them more marketable should consider job-specific training and linking developmental opportunities to tenure. Compensations and Rewards • Lead the market for some types of rewards and some positions in ways that fit with business and HR strategy. • Tailor rewards to individual needs and preferences. • Promote justice and fairness in pay and reward decisions. • Explicitly link rewards to retention. Supervision • Train supervisors and managers how to lead, how to develop effective relationships with subordinates, and other retention management skills. • Evaluate supervisors and managers on retention. • Identify and remove abusive supervisors. Engagement • Design jobs to increase meaningfulness, autonomy, variety, and coworker support. • Hire internally where strategically and practically feasible. • Provide orientation that communicates how jobs contribute to the organizational mission and helps new hires establish relationships. • Offer ongoing skills development. • Consider competency-based and pay-for-performance systems. • Provide challenging goals. • Provide positive feedback and recognition of all types of contributions Reading 13.2 – Knowledge Management Among the Older Workforce This article argues that organizations need to have a well-planned strategic means of transferring knowledge from retiring baby boomers to members of younger generations. It dismisses the assumptions that senior workers were problematic for organizations, citing research which show that senior workers • have low turnover rates • are flexible and open to change • possess up-to-date skills • are interested in learning new tasks • have low absentee rates • have few on-the-job accidents Senior workers also contribute responsibility and maturity, commitment to their work, experience and loyalty. Senior workers should 1) be encouraged to remain in the workforce as their positive contributions continue and 2) work more closely with younger workers to facilitate knowledge transfer. Five critical success factors relate to knowledge transfer 1. Coaching leadership style 2. Structure, roles, and responsibilities 3. Emphasis on learning and education 4. Attention to motivation, trust, reward and recognition 5. Establishing the right culture Chapter 14 Global Human Resource Management A. OVERVIEW This chapter outlines the intricacies and problems associated with international human resource management activities. Multiple stages of the expatriate experience must be successfully managed. This is especially true in the repatriation stage, when workers may return to personal and work environments that may be very different politically and culturally than the ones they left. Specific assignments may not be available upon return, and expatriates may be viewed as, or feel like, outsiders in their own organization. Strategic HR practices and processes can smooth these international issues. B. LECTURE OUTLINE I. OPENING CASE - REEBOK In 1998, Nike was hit with negative publicity concerning conditions at many of its overseas factories. Reebok, one of Nike’s main competitors, acted quickly to point out its strong record of support for human rights and few problems for Reebok or its sub-contractors. Reebok contracted with a respected nonprofit social research group in Jakarta, Indonesia to audit two of its shoe factories with over 10,000 workers. These audits marked the first time a U.S. company allowed truly independent outsiders with expertise in labor issues to inspect their factories and make the findings public. Some problems were identified, but some solutions were difficult as they involved introducing industrialized-world solutions on an industrializing-world and cultural environments. Liz Claiborne and Mattel soon followed the lead of Reebok in having outside evaluation of their international operations. II. INTRODUCTION HR is critical to success of international operations See Strategic Global HR at McDonald’s example. Organizational strategy might focus on expanding internationally for a number of reasons, including: 1. Enhanced market opportunities. 2. Expanded scope and volume of operations to support international initiatives, resulting in economies of scale. 3. Competitive pressures to keep pace with industry leaders 4. Acquisition activity that results in ownership of foreign-based operations. III. HOW GLOBAL HRM DIFFERS FROM DOMESTIC HRM International HR presents some unique contingencies for organizations, including: 1. More resources required to address a broader range of functional areas. 2. More involvement in the employee’s personal life. 3. Several different HR management systems are often required for different geographic locations. 4. More complex external constituencies, including foreign governments, political and religious groups. 5. Heightened exposure to risk. IV. ASSESSING CULTURE A. Lack of appreciation for or understanding of cultures can cause huge problems in international HR. B. Hofstede explained cultural differences along four dimensions (Exhibit 14.1) 1. Individualism versus collectivism 2. Power distance 3. Uncertainty avoidance 4. Masculine versus feminine tendencies / quantity of life C. Hall characterizes culture by communication patterns, and identifies five silent “languages”, including: time; space; material goods; friendships; and agreement. D. When cultures come together in organizational settings, special consideration must be paid to managing processes such as power dynamics and relationships; norms of participation and decision making; and performance management and compensation systems. V. STRATEGIC HR ISSUES IN GLOBAL ASSIGNMENTS A. See EXHIBIT 14.2: STRATEGIC HR ISSUES IN GLOBAL ASSIGNMENTS. Organizations can utilize several different approaches to manage the process of sending workers abroad. 1. Administrative approach - involves merely assists employees with paperwork and minor logistics. 2. Tactical approach - involves managing the “risk or failure factor”. 3. Strategic approach - involves much more support and co- ordination; adding extensive selection systems; ongoing, integrated training; a specific performance management system; destination services; and a strategized repatriation program. B. It is critical that organizations have a clear sense of reasons for an expatriate assignment, as indicated in Exhibit 14.3. Screening for the overseas assignment needs to consider cultural adaptability and should also involve any accompanying family members. See Expatriate Selection at Kellogg Co. example. C. Expatriate compensation can be determined through three different approaches; balance sheet method, higher-of-home-or-host and localization. D. Four different approaches can be utilized for global HR; ethnocentric, polycentric, regiocentric and geocentric, as outlined in Exhibit 14.4. VI. REPATRIATION A. Repatriation of returning employees is probably the most neglected function in international HR, yet it is the one that has the greatest impact on the return on investment made in employees sent abroad. Retention rates in the first year back can be as low as 50%. Organizations that fail to develop career management programs that allow those returning from abroad to share their knowledge and insight (rather than leave the organization and potentially share that knowledge with competitors) have a negative return on investment. B. Many returning expatriates find that: there is no job assignment waiting for them; they receive a job that they consider to be a demotion; or their new position strips them of autonomy enjoyed abroad. C. Critical career and personal issues must be addressed. See EXHIBIT 14.5: ISSUES TO BE ADDRESSED IN A REPATRIATION PROCESS. See Repatriation at Colgate-Palmolive example. VII. THE EUROPEAN UNION A. The European Union (EU) has a large number of umbrella employment laws that provide far more worker protection than afforded in the U.S. B. Employment at will is generally followed in the U.S., but it is generally not allowed in the EU, where it is difficult and expensive to terminate workers. EU workers have more generous vacation, maternity, retirement and other benefits than U.S. workers. C. Work councils must approve many management actions in several EU countries. VIII. MEXICO AND CANADA A. Even though Mexico and Canada are border countries, HR is carried out very differently in each country. Much employment discrimination which would be illegal in the United States is standard practice in Mexico. Enforcement of existing laws is also very lax. B. Canada, on the other hand, is known to vigorously enforce laws which prohibit discrimination in employment. Workers in Canada also receive far more protection that their counterparts in the United States. IX. CHINA A. Tremendous growth opportunities in the free market economy in China are being capitalized on by western organizations with significant HR challenges. Many university graduates are not suitable for employment in global organizations due to deficiencies in language, interpersonal skills, ability to work in teams and basic literacy. B. Those who are capable of working effectively in a multinational can command very high salaries. Retention of such workers can be a challenge, given the high demand for them. Supervisory relations, employer prestige, development opportunities, compensation and job title are key factors which impact retention. X. INDIA A. India bears some resemblance to China given the size of its population and growing economy. However there are stark differences between China and India B. India has a significant population of citizens who are well-equipped to work in multinationals. India’s technically trained workforce is highly sought after yet demand exceeds supply, making retention a challenge. See Retention at Prudential Process Management Services example. C. India has an extremely complicated legal system which involves more than 100 different noncodified and ambiguous laws related to employment. Termination of employees is difficult and many employee benefits are legally required. XI. CONCLUSION While the principles and processes of strategic HR are universally applied to all organizational settings and cultures, an organization whose strategy involves international operations faces additional challenges. In order to assure greater success in international markets, human assets must be viewed as investments, and need to be managed more systematically and strategically than what has traditionally been done. READINGS Reading 14.1: In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE The article is based on a project which attempted to conceptualize worldwide differences in leadership by examining a hypothetical situation of an American executive in charge of teams in Brazil, France, Egypt and China. Combining the work of Hofstede, Trompenaars and Kluckholm and Strodtback nine cultural differences were identified Performance orientation Assertiveness Future Orientation Humane Orientation Institutional Collectivism In-group Collectivism Gender Egalitarianism Power Distance Uncertainty Avoidance Successful global leaders were found to be Charismatic/value-based (able to inspire and motivate others based on firmly held core beliefs) Team-oriented (able to build teams and implement common purpose among team members) Participative (involve others in making and implementing decisions) Humane-oriented (supportive, considerate, compassionate and generous) Autonomous (independent and individualistic) Self-protective (ensure safety and security) When in Brazil spend time meeting key executives spend time with the team both at work and in informal settings remember Brazils is low on performance orientation and future orientation and high on power distance rewards should be based on both individual and team performance with team emphasized When in France keep the personal outside of business maintain high power distance low human orientation may result in being non-supportive low levels of future and performance orientation imply little interest in grand visions strategy and action plans need to be simple and well-planned When In Egypt managers should act distinct from the team and present an image of omnipotence managers need to be seen as deserving of leadership role and status very strong in-group/out-group collectivism with in-group maintenance paramount in decision making group harmony important and team leader should be paternal, autocratic yet benign high humane orientation invites family issues into workplace for boss’ assistance team expects to provide input but decision to be made by leader employees expect leaders to develop and communicate grand and ambitious strategies When in China high performance orientation, high institutional orientation and high in-group collectivism personal relationships and networking are foundation on which business is conducted and ultimate test of effectiveness and success Confucian ideas stress relationships and community; word “self” has negative connotation workers respond to exciting visions Reading 14.2 – Cross-Cultural Management and Organizational Behavior in Africa Africa is the most heterogeneous of the seven continents; linguistically, culturally, and ethnically. Hence, doing business in Africa can be a complex and sensitive issue and Western managers need to be sensitive and adapt to the principles which guide African management. Modern African Management Principles • Collective Solidarity: Employee teams work most effectively, achieving cohesiveness and solidarity, by working toward a common purpose • Group Significance (Ubuntu): Ubuntu means that humanity is a shared value in which personhood exists within a group context, only insofar as a person values others. • Harmony and Social Cohesion: Emphasis is placed on maintaining peace and keeping conflict to a minimum by promoting internal, communal, and familial harmony • Consensus: Emphasis is placed on collective decision making. • Consultation: Group participation is strongly emphasized, as are mutual understanding, joint problem solving, and honoring the collective wisdom of all team members. • Local Time (or “African” Time): In Africa, time standards are ambiguous, and thus require flexibility on the part of non-African managers. • Paternal/Maternal Leadership: African firms are often structured like African families and, therefore, organizational leaders (managers, supervisors, and owners) tend to behave with paternal (or maternal) responsibility toward their staff members • Age and Authority: Advanced age is inherently equated with authority, business wisdom, rank, title, and experience. Thus, an older person automatically holds a certain level of superiority, regardless of rank, title, or education. Dimensions of African Culture related to Workplace Behavior Collectivism (vs. American Individualism) Performance Feedback - discussing an employee’s performance, weaknesses, shortcomings, or abilities openly with the employee is likely to cause embarrassment and clash head-on with the society’s harmony norm. Team members may go so far as to protect the nonperformer, when necessary, by sharing or dividing his or her responsibilities among themselves High Power Distance - people of lower status show much higher deference toward those of authority or senior status than is typical in the West. Since age and experience are esteemed, it is often considered inappropriate to question or challenge a teacher, supervisor, or any member of the professional elite. Consensus-Driven Decision Making - consensus is crucial in decision making which can result in a long process to reach decisions that satisfy everyone. Harmony - in African culture, saving face is highly valued with direct and frank communication not the norm and a discomfort with blunt statements. It is critical to maintain harmony at almost any cost in interpersonal relationships Dissent May Imply Disrespect - a show of dissent can be interpreted as a show of disrespect and the hierarchical nature of business culture tends to discourage subordinates from openly disagreeing, challenging the status quo, speaking one’s mind, criticizing ideas, giving feedback, and reporting problems. To avoid disturbing harmony, Africans will often give a positive answer and be reluctant to refuse a request. Quality Orientation - Africans are more focused on a subjective, quality-oriented approach to problems, which cannot be measured and is usually based on personal experience. Quantities and objective interpretation of figures is eschewed in favor of perceptions Importance of Family Ties - hiring relatives, rather than hiring based on merit and experience, is the common practice. Beyond family, nepotism transcends blood ties to encompass loyal friends and important allies, such as members of other large family firms. Negotiations and Concessions – ultimate decision makers are usually not directly involved with negotiations and only brought into the process to make last-minute concessions or demands. Relationships Precede Profits - In contrast to the United States, business in Africa is about friends and colleagues first, not deals or profits. Personal relations take precedence in business. Instructor Manual for Accounting Theory: Conceptual Issues in a Political and Economic Environment Harry I. Wolk, James L. Dodd, John J. Rozycki 9781285426792, 9781337619998
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