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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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
can help in
maintaining the
innovative
culture in the
organisation
Low UAI These people are
more open to
change and
embrace the
concept of
innovation
The aim is to
maintain the
focus of the
employees
without emphasis
on showing off
the talents
possessed.
The USA has
a low UAI
culture, as the
people are
not afraid to
take risks and
welcome any
type of
innovation
that may
befall in the
organisations.
Although
some people
may think it
as a bad
influence,
others may
embrace it
and make

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changes so
that it can
influence the
people. It is
highly
unlikely that
IRC may
have any
innovation or
changes in
the
procedures of
its
organisation.
Therefore,
this can be
considered as
one factor
that can be
considered as
an advantage
for IRC.
Table 4: Hofstede’s dimension of culture (UAI)
(Source: Created by author)
LTO Characteristics Tips Culture of Brazil Culture of

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
USA
High LTO People seek the
truth about a
particular event
that occurs. This
provides them with
an opportunity to
remain modest and
emphasise on
virtues and
obligation (Foot
and Hook 2011).
People behave in a
modest way and
avoid interacting
with other people.
The
compromising
nature of the
people defines this
attribute
Low LTO People have a
strong convention
and people tend to
oversell the ideas
and beliefs. The
assertions are
critically assessed
People need to sell
their ideas so that
they can be taken
seriously. The
selfish nature of
the people and
their disagreement
to compromise
makes up this
attribute
Brazil has a low
LTO as the people
of the country
tend to sell
themselves to the
organisations.
This can be
hugely effective
for IRC as the
organisation need
to sell their ideas
so that they can
promote its
This is
another
similar
context with
Brazil. The
people of
the USA
follow a
Low LTO,
which
suggests
that, the
country

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
business in the
market. They
believe in modern
education for
preparing for the
future
analyses
new
information
to
understand
whether it is
true.
However,
the people
remain
practical and
despite the
fact that
most people
are god
faring the
use of
scientific
technologies
are
welcomed
by the
country.
Therefore, it
can be said

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
that the IRC
can benefit
from this
particular
attribute as
the company
aims to help
the society
by being
practical and
at the same
time using
scientific
methods.
Table 5: Hofstede’s dimension of culture (LTO)
(Source: Created by author)
IND Characteristics Tips Culture of
Brazil
Culture of
USA
High IND This is
characterised by
the optimisation
that people have
and the importance
of speech
These people do
not take life
seriously and
leave things more
to chance. They
encourage debate
Brazil has a high
indulgent society
and the positive
attitude of the
employees can
help IRC in
USA has a
high
Indulgence
score in
which the
people of the

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
and dialogue
between two
people
difficult times.
This can help the
organisation to
remain focused
and take
challenging
decisions
country
believe that
entertainment
is required
along with
work.
Therefore, it
can be said
that the USA
can be a
strong
candidate for
the
establishment
of IRC. This
is also
supported by
the fact that
the country
has promoted
the abolition
of drugs and
other life
threatening
items.

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Therefore,
the people of
the society
can be
convinced by
the IRC
Low IND Low IND indicates
pessimistic nature
and controlled and
cautious approach
to activities
They respect and
abide by the
formal rules and
regulations in an
organisation.
However, during
informal meeting
negativity is
presented
Table 6: Hofstede’s dimension of culture (IND)
(Source: Created by author)

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Figure: Hofstede analysis of the culture of Brazil and USA
(Source: Paillé et al. 2014)
Identifying a reward system that would be appropriate
The analysis of the cultural dimension can provide an idea of the type of reward
system that can be suitable for the employees of Brazil. The reward system needs to be based
on the advantages and disadvantages it provides and the manner in which the people of Brazil
react to the concept of gaining a reward. As stated by Mankin (2009) the reward system is
necessary to provide motivation to the employees for continuing to perform well in the
organisations. In this regard, analysis can be made on two types of reward system that can
help the employees working in IRC to remain motivated.
One of the reward systems that can be analysed is the Total rewards system.
According to Jackson, Schuler and Jiang (2014), the total reward system brings about the
investments that are made by an organisation. It helps in bringing about the valuable things
for the employees that they perceive in an organisation. In the case of IRC operating in
Brazil, the total reward system plan can be made taking into consideration certain methods

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that attract the employees. These include salary, bonus, incentive pay, benefits and employee
growth opportunities. According to Handy (1999), these have certain advantages that help in
the motivation of employees.
One such advantage of total reward system particularly in the context of Brazil is that
it helps in the retention of the employees. The employee retention can be done by providing
bonus and incentive so that monetary motivation can be gained. According to Mello (2015),
the analysis of the cultural dimension of Brazil states that despite having a collective attitude
the employees compete against another for success and recognition. Hence, getting an extra
incentive from the IRC due to the services provided to the community can encourage the
employees to continue working in the organisation.
Another advantage that can be obtained by the application of this type of system is the
increased performance of the employees. With the extra incentive and bonus, available
employees can provide their best efforts in helping the society of Brazil. This can provide
them with extra motivation to work and improve their performance. This can assist IRC as
the best efforts of the employees can be obtained. Therefore, IRC can improve its
performance and ensure that the employees working in the company get a proper exposure at
a workplace.
At the same time, IRC can use another method to provide a reward to the employees.
The application of the performance related pay can also help IRC to motivate the employees.
Schein (2004) stated that the performance-related pay is a manner in which payment of
employees can be managed by linking it with the salary of the employees. The salary is liked
after an assessment has been made of the individual performance of the employees. This
performance is measured against the pre-defined objectives of the employees and is paid as
per the merit of the employees. This is one of the oldest concepts that that exists in the

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business market and has certain benefits that can be used by IRC to gain a competitive
advantage.
One such advantage of the performance related pay includes setting a defined
framework. Managers of IRC can ensure that a framework can be developed that helps in
setting the goals of the organisation. The employees recruited from Brazil can be given a
specific set of goals and based on the goals the payment can be made. This can help in
improving the productivity as well as the performance of the employees (Baum 2016).
Another advantage that can be provided is the fact that the focus of the employees can
improve. The employees of IRC from Brazil can maintain their focus on the type of goals that
need to be achieved so that they can be eligible for gaining payment under the method.
However, there are disadvantages as well in this method. As stated by Wilton (2016)
the disadvantage of the method is that employees may feel demotivated if the goals are too
hard. The difficulty level of the goals needs to be based on the skills of the employees. In the
case of IRC, the company provides social community service and thereby, the expectation is
that the goals set may not be as tough. This can provide a mode of encouragement for the
employees. Another method is that it reduces the equality of the payment. Workers belonging
to the same level may get varied payment depending upon the performance of the employees.
Thus, after the analysis, it can be said IRC implement the total rewards system so that
it can maintain the loyalty of the customers. As stated by Luthans and Doh (2018) the reward
system does not contain any type of discrimination against any of the employees and
encourage them to continue to work harder and gain the deserved bonus or incentive. This
can help the people of Brazil to remain competitive in the market and provide a complete
performance for success. Thus, it can be said that total reward system is appropriate as it can
be aligned with the work culture of Brazil.

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Evaluating alternative solutions
Northouse (2015) stated that the perception of the employees about the world could
be described as the international management orientation. The classification of the alternative
management orientation can be done by applying EPRG framework developed by Perlmutter.
The application of the method can help in identifying the behaviour of the employees. This is
usually done in four ways:
Ethnocentric: As stated by Morschett, Schramm-Klein and Zentes (2015) the
ethnocentric approach is the default standards that every business organisation need to
comply. Companies tend not to change the products or services that it provides initially.
Instead, the original products and services of the company are retained to maintain the culture
of the company. In the case of IRC, the main motto of the company is to help people and
ensure that the community in which they work receive positive care. Hence, following an
ethnocentric approach can help IRC to remain true to its culture and encourage the Brazilian
employees to follow the norms of the company. However, at the same time, Stone et al.
(2015) argued that this approach might have a negative impact in the manner that sometimes
organisations need to change its policies to comply with the set laws of the country. Failure to
do so can result in loss of profit for a company. Therefore, the general manager of IRC needs
to adjust to the norms of Brazil by maintaining its organisational culture.
Polycentric: The polycentric approach provides equal opportunity to the market of
every country. Separate strategies for every country are made so that organisations can
prevail in the economic and business environment of that particular country. Sheehan (2014)
stated that this particular approach is suitable for countries that have financial constraints.
Therefore, in a country like Brazil, the application of this type of approach can help IRC to
execute its business model, as skilled managers are not required to maintain a centralised
policy. However, the disadvantage is that the application of the approach can restrict the

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
career approach of the local as well as the foreign nationals. The chances of achieving
synergy are also reduced as the approach of analysing every country can slow down the
expansion process for IRC.
Regiocentric: Managers use the application of the regiocentric approach in order to
understand the economies of the countries as it is considered as the main factor for a
company. Some of the countries in the world have a similar economy and it is required that
the managers make a minor analysis of the changes that exist in the economies. As stated by
Storey (2014) the regiocentric approach can help companies to understand the changes that
may take place in the economies and thereby based on that analysis, managers can formulate
strategies. In the case of IRC, the economies of Brazil, Argentina and Venezuela are similar
to one another hence, it is necessary for IRC to analyse the three economies and make
strategies for Brazil. On the downside, the disadvantage of the application of the approach is
that due to the regional identity being similar, a slight change in the economy may jeopardise
the chances of a company to be successful (Purce 2014).
Geocentric: The geocentric approach helps in providing encouragement to continue
with global marketing. The geocentric approach ensures that companies develop a potential
human resource management unit that can are within the political limits. In the case of IRC,
the company can maintain a strong culture among the employees as it has already been seen
that Brazil maintains collectivism culture. However, Crowley-Henry and Heaslip (2014)
stated that the main disadvantage of the approach is that the immigration rules may restrict
the growth of the market and because of this maintaining a balance between the local and
global responsibilities can be difficult.

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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Figure: EPRG Framework
(Source: Kramar 2014)
Conclusion and Recommendation
After the analysis of the EPRG framework, it can be recommended that the general
manager of IRC follow the ethnocentric approach. This is mainly because of the fact that the
culture of the organisation can be maintained and IRC can continue its work of helping the
community. Apart from this, the competitive nature of the employees in Brazil can drive the
company using the international rules. Thus, it can be conducted that in order to maintain a
proper and competitive business it is necessary for the managers of IRC to conduct a cultural
analysis of Brazil. This can help the organisation to understand the differences that it needs to
deal with while maintaining its organisational culture and function.

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