How societal culture influences friction in the employee-organization relationship

Abstract

The proposed model unpacks societal culture’s multi-level influence on friction in the employee-organization relationship (EOR), resolving two knowledge gaps: overreliance in EOR research on employee-centered concepts, ignoring the influence of the organization; and minimal theoretical analysis on why societal culture contributes to relational problems between the organization and its employees (Coyle-Shapiro & Shore, 2007). We argue that societal culture influences friction in employee-organization relationships through the individual-level mediator of work motives and the organization-level mediator of EOR strategy. Although EOR friction commonly occurs when employee work motives from one culture interact with EOR strategies from another, studies rarely examine the mechanisms that explain these relational challenges. Drawing on individualism, in-group collectivism and institutional collectivism, we explain two primary causes for EOR friction in each mismatched cultural condition, and offer potential solutions for reducing friction stemming from each source. Our arguments suggest that organizations who effectively adapt their HRM practices to the societal culture in which they operate will be less likely to experience EOR friction than organizations who adopt a more ‘one size fits all’ relational EOR strategy.