Managing employee expectations in South Asia: the case of multinational companies in Bangladesh

Abstract

Managers of Multinational Corporations (MNCs) face many challenges in managing a culturally diverse workforce. One key aspect to consider in the management of human resources is the employment relationship itself where the cultural context can play a significant role in shaping expectations. Employee expectation (psychological contract) has emerged as an important element of the employment relationship and this study looks at how fulfilment of this contract can affect employee outcomes. The study was conducted in the non-Western context in Bangladesh, an emerging South Asian economy. To assess the cultural influences in Bangladesh Hofstede’s (1980) work in regard to Pakistan and India was used as a framework to extrapolate the most likely cultural dimensions to be found. Thematic analysis was conducted based on the procedure outlined by Braun and Clarke (2006) from interviews of twenty seven employees of three multinational companies. Five critical elements of HR practices are identified that affect employee expectations (psychological contract) significantly in Bangladesh. These emerged themes are: family considerations, financial stability, social recognition, religious considerations and equitable treatment. These themes are directly or indirectly affected by the cultural orientation of the employees. It is suggested that it is important for managers understand the cultural context in which they operate as certain cultural values and beliefs can influence employee perceptions of what is expected.