IHRM: Brazil Cultural Adaptation & Reward System for IRC (MOD003471)

This report delves into the intricacies of adapting international human resource management (IHRM) strategies to the cultural nuances of Brazil, focusing on the International Red Cross (IRC) as a case study. It utilizes Hofstede's cultural dimensions to analyze Brazil's national and business culture, examining aspects like power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The report identifies appropriate reward systems for motivating Brazilian employees, considering the cultural context and potential advantages and disadvantages. Furthermore, it evaluates alternative solutions using Perlmutter's EPRG framework, offering recommendations to the IRC general manager for effective employee motivation and cultural adaptation within the Brazilian context. This analysis aims to provide insights for successful IHRM implementation in Brazil, balancing organizational goals with cultural sensitivity.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of Student
Name of University
Author Note

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Executive Summary
The report analysis the manner in which cultural diversity can help in the analysis of
countries. The focus of the report is on Brazil and the difference in culture that needs to be
undertaken by International Red Cross is analysed. International Red Cross is a reputed
organisation that provides community services to people in need. The report analyses
Hofstede’s cultural dimension to understand the cultural dimensions that exist in Brazil.
Apart from this, the report analyses the reward system that needs to be adopted by IRC so
that it can keep the employees motivated. Recommendations are suggested to the general
manager of IRC that highlights the appropriate application of EPRG approach.

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Table of contents
Introduction................................................................................................................................3
Analysing culture of Brazil........................................................................................................3
Identifying a reward system that would be appropriate...........................................................10
Evaluating alternative solutions...............................................................................................13
Conclusion and Recommendation............................................................................................15
Reference..................................................................................................................................16

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Introduction
International human resource management is considered as a typical human resource
function. It mirrors the basic human resource functions like recruitment, selection, training
and development. The difference of this concept with human resource management is the fact
that the functions are applied at the international level (Banfield and Kay 2012). The current
report highlights the manner in which the International Red Cross (IRC) can adapt itself to
the culture of Brazil. The national culture of Brazil has been analysed along with the business
culture by using the Hofstede method of cultural dimension. The reward system that needs to
be adopted is also analysed so that the employees working for the company in Brazil are
motivated by using a monitory system. At the same, the application of EPRG framework
developed by Perlmutter has been evaluated so that the manager of IRC can recognise an
alternate solution for motivating employees.
Analysing culture of Brazil
To gain success in a country like Brazil, the managers of IRC need to consider the
work culture that exists in the country. According to Deresky (2017), the cultural dimension
of a country can be analysed by evaluating the model proposed by Hofstede. The culture of
the country can be determined using six dimensions of Hofstede’s model of strategic
development. These six dimensions include:
 Power Distance Index (PDI)
 Individualism versus Collectivism (IDV)
 Masculinity versus Femininity (MAS)
 Uncertainty Avoidance Index (UAI)
 Long-Term Orientation versus Short-Term Normative Orientation (LTO)

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 Indulgence versus Restraint (IND)
PDI Characteristics Tips Culture of Brazil Culture of
USA
High PDI Have centralized
organizations and
complex
hierarchies. It also
has large gaps in
compensation,
authority and
respect
Need to
acknowledge the
concerns of the
leaders and it is
also needed that
the top-tier of the
management is
visited to gain
answers (Brewster
et al. 2011)
High PDI exists
in Brazil, as the
people believe
that hierarchy
needs to be
respected and the
inequality that
exists between the
people is
accepted. Paying
respect to the
elders is a
national culture of
Brazil. The
impact of this is
in organisations is
that IRC needs to
maintain a
hierarchical
organisational
structure in Brazil
so that the

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inequalities
among the people
are made clear.
Low PDI The organisational
structure, in this
case, is flat and
there is no such
power distance
between
supervisors and
employees. They
are considered as
equal and one
The
responsibilities are
delegated and
decision making is
shared between
the employees and
the employers
Low PDI
exists in the
USA, as the
people are
treated
equally. It is
believed that
both the
leaders and
the followers
endorse the
inequalities
that exist in
an
organisation.
Therefore, a
low PDI
exists in
which not
much heed is
paid to the
organisational

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structure.
Therefore, it
is important
that the
managers of
IRC keep this
particular
method in
mind while
setting up
campaign in
the country.
Hence, the
Low PDI can
have a
different view
on the culture
of the
organisations
in USA as
compared
with Brazil.
Table 1: Hofstede’s dimension of culture (PDI)
(Source: Created by author)
IDV Characteristics Tips Culture of Culture of

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Brazil USA
High IDV The time, privacy
and freedom of the
people are valued.
The employees are
provided with
challenges and a
reward is given to
the employees able
to fulfil the
challenges
The
accomplishment of
individuals is
appreciated but the
work/life balance
of the employees is
lost and they do
not have the
opportunities to
have social
interaction.
The USA has
a high
individualism
culture as is
evidenced
from the
manner in
which the
employees
and
employers
put
emphasise on
themselves.
The people
are more
concerned
about the
family
members and
personal
wellbeing
instead of the
team

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members in
an
organisation.
This may a
cause for
problem for
IRC, as the
aim of the
organisation
is to provide
support to
one another
and the
concerned
society.
Therefore,
IRC need to
ensure that
the managers
of IRC
understand
the manner in
which the
individual
culture can

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
be used for
its benefit
Low IDV The focus is more
on the
development of
skills of the
employees and
motivates them to
gain intrinsic
rewards It also
helps in
maintaining
harmony among
group members
According to Purce
(2014), the
employees having
low IDV tend to
shy away from
giving negative
feedback in public
and focus on
gaining wisdom.
They tend to
decline any
invitation
repeatedly
Brazil has a low
rate of IDV,
which suggests
that the national
culture of Brazil
is into protecting
one another.
Employees
working in an
organisation can
provide support
to one another
and share the
gains and losses.
Table 2: Hofstede’s dimension of culture (IDV)
(Source: Created by author)
MAS Characteristics Tips Culture of
Brazil
Culture of
USA
High MAS These are
attributed with
pride and a feeling
of importance.
These people like
Employees may
be aware of the
difference in
roles and
opportunities in
Brazil is driven
by competition
and success. The
employees
employed in the
This particular
factor is similar
to Brazil. Like
Brazil, the USA
is driven by

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to be more
dominating
business can be
recognised by
being available
for long hours
(Deal and
Kennedy 1982)
IRC will be
subjected to
compete against
one another and
such practise
continuous
among people
from an early
childhood.
high
competitiveness
and a wish to
endorse growth
in positions.
Therefore, the
masculinity of
the country is
high and it can
be related to the
fact that it is
related to the
individualist
culture of the
organisations.
These two
attribute can
combine well to
ensure that an
organisation
like IRC can
gain success in
the competitive
business
market.

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Therefore, this
is one area that
can be seen as a
common factor
in both
countries
Low MAS They are more
focused on the
quality of life and
enjoy the
consensual
relationship
They believe in
negotiation and
believe in
maintaining
flexibility in
work
Table 3: Hofstede’s dimension of culture (MAS)
(Source: Created by author)
UAI Characteristics Tips Culture of
Brazil
Culture of
USA
High UAI They are usually
conservative unless
threatened by
possibilities of
failure. People
with this
dimension are
more expressive
It is needed that
the employees
remain clear
about the goals
and encourage
creative thinking
for improvement
Brazil has a high
score in this
dimension and
changes made by
IRC in the
policies and the
Brazilian people
will welcome
procedures. This