...Qatar University College of Business and economics DO CULTURAL DIFFERENCES INFLUENCE HRM PRACTICES? A working research paper in Department of Graduate Studies By Sara La - 20020000 July 28, 2013 Abstract This research attempts to examine if the cultural differences would have an impact on the Human Resources Management (HRM) practices. Furthermore, such study would provide guidance and assistance to the HR professionals and for the multicultural institutions as well. With the continuity of the world, the effectiveness of globalization surges and the world becomes much more smaller than before. This globalization accelerates having a cultural engagement. There are some uncommon things in previous years that emerge because of globalization such as: the multicultural organization, branches operates in far countries from the original, etc. Approaching these two phenomena needs good strategies since with the variation of culture, all practices may vary along with the HRM practices. Several literatures are reviewed. All of them reached the same result that foster the claim of: diverse culture will have a huge impact on the HRM practices. This paper applied the Hofstede’s Cultural Dimensions theory for exploring cultural dissimilarity across countries. Results reached reinforce the claim: human resources professionals changes their practices with the culture differences in the countries they want to become better at. Keyword: Human Resources Management, Hofstede’s...
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...Int. J. of Human Resource Management 18:1 January 2007 147– 158 HRM practices in Egypt: the influence of national context? Mike Leat and Ghada El-Kot Abstract In this paper we present the findings of a study which collected data on a range of HRM practices normally used in 58 Egyptian organizations operating in Egypt. The range of practices is concerned with job descriptions, recruitment and selection, training and development, compensation, performance appraisal and employment security. We examine and discuss these practices in the Egyptian context. The dimensions of the Egyptian environment which we examine include: the socio-cultural context, Islam, the vocational education and training system and elements of the economic and legal environment. The practices and approaches being used by the sample organizations appear to be the product of both culture bound and culture free influences. The main contributions of the study are that it provides much needed information on the HRM practices and approaches being adopted by Egyptian-owned organizations in the early part of the 21st century and provides support for the influence of national context on the HRM practices pursued by indigenous organizations. Keywords Egypt; HRM practices; Islam; institutional context; culture. Introduction: HRM practices and national context Against a background of the increasing internationalization of business, globalization of markets and cross-national activity by multinational...
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...IHRM can be defined as a highly dynamic and constantly evolving field with new themes emerging, which transcends traditional approaches. (G. Hofstede, 2001) The assignment contributes in developing a broad, detailed and rational study of Japanese HRM practices mainly recruitment and selection and also training and development. It tells us about what is the basic essence that makes them quintessentially Japanese. It tells how it is advancing towards a continuous evolutionary change. This assignment also tells the reader about the impact of culture, traditions, socio-economic and politico-legal angles that affect the very basis of Japanese HRM structure. Finally it tells the reader about the different changes in HRM practices due to the current scenario and ultimately leading the way and telling about the implications for Japanese HRM practitioners. Japan is kind of very well designed society there is plans and structure for everything (Doole and Lowe 2000). Japanese management puts stress to secure survival, long term growth of company to benefit all incorporating the organization. It focuses on soft S of Mckinsey 7S concept i.e. staff style, skill and subordinate goal. Overall significance of HRM on management is high. There is a high importance of HR with stress on its strategic meaning. Management in Japan since end of Second World War can be segmented into different stages shuffling between uniqueness and universal practices. Japanese culture strongly influenced by...
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...Examining HR Issues Based on Hofstede’s Cultural Dimensions In United States and India In today’s global market, external environment is a large influence on HRM activities. One of the factors that contribute significantly to this external environment is culture. Hofstede’s five dimensions can be used as the indices to compare and contrast the HR issues faced in United States and India. 1. Individualism versus collectivism : The typical traits of individualism include individualists viewing themselves as independent of the group that they are a part of. Goals and objectives to individualists involve prioritizing their own objective over group objective. Outlook and behavior includes placing one’s own personal attitude over social outlook. Individualists look after themselves and their direct families only. Collectivists on the other hand, identify themselves as a part of a group and are dependent on the group. Goals and objectives are group oriented. Outlook and behavior are driven by social norms. (Kulkarni, Hudson, Ramamoorthy, Marchev, Georgieva-Kondakova, Gorskov, 2010) When we identify this dimension to United States and India, United States is considered highly individualistic in culture. They are independent; individual rights take priority over obligations to others. They stay true to their own values and beliefs and pursue individual goals and interests. Indian culture on the other hand, is interdependent, collectivistic, where people are emotionally, economically...
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...Comparative HRM: China and Australia * Introduction Over the last few decades, as a rising number of globalisation of business transactions and organisations are seeking to develop and operate in foreign markets, the need for comparative human resource management studies are increased (Brewster & Mayrhofer (eds.) 2012), there are a lot of differences in HRM in different countries and regions, such as institutional culture, organisational structures, recruitment and development and relation of employee (Crystal & Iles 2013). The comparative human resource management provides a better understanding of different national settings on the management task (Hollinshead 2010). Two countries from different institutional and legal systems which are China and Australia will be comparatively analysed in this essay. Firstly, the overview of both countries and culture dimensions will be analysed. Secondly, three HR features will be outlined respectively include culture, organisational structures, and the content of Human Resource Management. in addition, a critical evaluation will be given for how and why these features in these two countries developed in the way that they have. Moreover, a comparative analysis of how HRM has developed in each country will be given, as well as that approach to HRM. * Background and Different Culture between China and Australia The study of the influences of culture is a key role in HRM (Brewster & Mayrhofer (eds.) 2012). Moreover, due...
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...INTRODUCTION Human resource management (HRM) is universal in terms of strategies, policies and processes. The term has gradually replaced personnel management. Managing and developing human resources in the international (global) setting is increasingly recognized as a central challenge, particularly to multinational enterprises (MNEs). Human resource management is both academic theory and a business practice that addresses the theoretical and practice techniques of managing a workforce. While the theoretical aspects of the discipline may also be universal, the same cannot be said of its practice. The paper defines human resource management, the theoretical basis of the discipline, business practice and global or international human resource management. Thereafter, the paper concentrates on global perspective or issues in international human resource management practice. HUMAN RESOURCE MANAGEMENT Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” (HRM) and “human resources” (HR) have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. Human resource management can also be defined as the function within an organization that focuses on recruitment of, management...
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...2 LEARNING OBJECTIVES After reading this chapter you should be able to •• describe the basic characteristics of culture and explain how cultural dimensions can be used in global HRM, •• describe how the institutions of society can shape HRM policies and procedures, •• discuss the possibility of the convergence of HRM across countries, •• explain how the heritage of state socialism continues to influence the context of HRM in transition economies, and •• discuss the effects of cultural and institutional context on the HRM role and on employee expectations. 23 24 ESSENTIALS OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT Springtime in Paris As she savored the last bite of her croissant, Martha Pereaux, HR director for C3 Technologies, thought about how she would approach her latest “cross-cultural collision,” as she had come to think of them. In the year since she had moved to Paris from Houston, there had been many, but none quite as bizarre as this one. Martha had taken the big promotion to head up the HR division of the joint venture between Houston-based SuperChem and the French company. C3 developed technology for the oil industry, primarily new types of concrete that formed the barrier wall for offshore oil and gas wells. The joint venture was meant to take on the likes of the giant Schlumberger on its own turf and compete with them for valuable technical staff. Everyone said she was the perfect choice, having grown up in a bilingual family in Canada...
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...HUMAN RESOURCE MANAGEMENT (HRM) IN THE GLOBAL PERSPECTIVE: THEORY AND PRACTICE. BY UKERTOR GABRIEL MOTI (P.hD.) Department of Public Administration UNIVERSITY OF ABUJA INTRODUCTION Human resource management (HRM) is universal in terms of strategies, policies and processes. The term has gradually replaced personnel management. Managing and developing human resources in the international (global) setting is increasingly recognized as a central challenge, particularly to multinational enterprises (MNEs). Human resource management is both academic theory and a business practice that addresses the theoretical and practice techniques of managing a workforce. While the theoretical aspects of the discipline may also be universal, the same cannot be said of its practice. The paper defines human resource management, the theoretical basis of the discipline, business practice and global or international human resource management. Thereafter, the paper concentrates on global perspective or issues in international human resource management practice. HUMAN RESOURCE MANAGEMENT Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” (HRM) and “human resources” (HR) have largely replaced the term “personnel management”...
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...Abstract Internationalizing a firm is one of the most important steps a company can take to become more competitive. It can also be one of the most challenging tasks ever taken on because of the amount of development a company must go through in order to make an expansion into new countries successful. The following internationalization plan for the company iCracked will go over strategic goals for the firm, what type of firm iCracked will have to become as it internationalizes, what key aspects of the market must be focused on to remain competitive, and how HRM is going to play an essential role in the company as it internationalizes. HRM will be focused on how performance is managed, how employees are compensated as well as rewarded, selection methods in differing countries, training and development across the globe, and if there is/should be a difference between countries in terms of work-life balance. iCracked Internationalization Plan Across the globe, more than 20% of iPhone owners accidentally damage their phone, resulting in an ugly, unattractive, obnoxious cracked screen. As one of the most popular SmartPhones in the world, Apple’s iPhone is in dire need of a specialized repair service for the easily cracked screens that leave consumers in a panic as warranties expire. Founded in 2010 by a Cal Poly student, AJ Forsythe, iCracked Incorporated is a company that offers such a repair service in the US replacing broken screens and providing repairs for water damage...
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...valued assets and a source of competitive advantage (Guest, 1999). The way personnel were managed can be seen as the most significant reason to gain a competitive advantage over others (Salaman, Storey and Billsberry, 2005). In the 19th century and large parts of the 20th century labour was seen as abundant and economists classified it as the main variable costs (Salaman, Storey and Billsberry, 2005). People where hired and fired very quickly and pay was give on a performance related basis. Organizations and their managers did not want to invest in their personnel and their skill development. According to Kirkaldy and Flanders (1965), the decades before SHRM existed managing labour were based on productivity bargaining (Kirkaldy and Flanders, 1965). This period can also be described as the traditional HRM era. This all changed in the 1980’s when several big organizations started to think of new concepts and aspirations to create a competitive advantage over their rivals. British Airways for example demanded their staff to take the ‘commitment approach” instead of just complying. The airline had to make a bald move due to the enormous competition in the airline industry. The airline invested heavily in staff and development training to change the companies’ culture. In the same way Jaguar, a famous British car manufacturer, changed their SHRM perspective. Managers changed the company language such as customary practises and compromise into ‘the needs of the organization’ and ‘customers...
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...Christian. Nowadays, business becomes internationally over the world. People can come a foreign country and setting up their business activities oversea. There are a lot of important matters that need to be considered before opening business in the foreign country. Human resource management (HRM) is one of such important matters that essentially contribute to the furture business success. Building a strategic HRM program will be very neccesary from the start for business establishment. The HRM shall be discussed in the following paragraphs, especially for a German company. Summary instroduction about Germany Germany covers an area of about 357,000 square km in the central part of Northern Europe. The German population is estimated at 80.5 millions. Christianity is the dominant religion, with 65 to 70 percent of the population. The official language is German. Germany was a founding member of the European Community in 1958. It is part of the Schengen Area, and has been a member of the eurozone since 1999. It is a member of the United Nations, NATO, the G8, and the G20. Germany is a highly developed country in the EU. Germany in Hofstede cultural dimensions According to Hofstede model, Germany has cultural dimensions such as: low power distance, high individualism, high masculinity, high uncertainty avoidance and high longterm orientation. (See below) (Source: http://geert-hofstede.com/germany.html ) By making PEST model, this helps us to analyze and get a better...
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...Variations In Human Resource Management Based On Cultural Dimensions Tyrone Kelly Saint Leo University We recognize that we exist in a global economy. Advances in telecommunications and Internet technology have literally placed connectivity with the world at our fingertips. This evolution is a catalyst for people of various nations who would not ordinarily interact, to collaborate, work much closer, more intimately and more frequently than ever before. This is a very stimulating time, yet it is also challenging for Human Resource Management teams in administrations all over the world. Questions such as, what are the cultural business norms or taboos that one should be sensitive to, or how to interact in a business setting with someone of another culture will inevitably arise. Thus, learning the people, culture and work ethic of a host nation is just as important, if not more so than learning about its business, finance and engineering infrastructures. The requirements of developing strategies, organizing projects, and motivating individuals to achieve and maintain competitive advantage for joint ventures is essential. Just as important is the development of sincere relations with people from around the world. Understanding key element of cultural diversity will be critical in this endeavor. No matter where you are in the world, people expect to be treated with respect and honor when you are guests in their country. Attempts to change others to fit your paradigm, e.g....
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...environment constantly demand companies to assess their organizational environment. The field of business is always changing and it is important for companies to continually evolve. With economic globalization it is necessary for each corporation to adapt to change and interpret event that occur in the environment. Managers, HR professionals, and employees contribute to the success of their organization. When businesses decide to step into the international market they have to face some challenges. Regardless of where in the world the business is expanded, human resources professionals have to collaborate with local professionals to attend to changes within the corporation and adjust the HRM system. The purpose of this paper is to analyze the role of HRM cross culturally and how cultural issues are resolved. National cultures influence strategic decisions and leadership styles “as well as human resource management practice such as performance appraisal,” (Dartey, 2013, p. 40). Studies have shown that in cultures where high power distance exists, “loyalty and obedience to those in higher authority is required,” (Darte, 2013, p. 40). So...
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...Literature Review on Human Resource Management in the Middle East. This paper seeks to investigate and review the literature of Human Resources Management (HRM) and its integration into the Middle East. According to Jordanian researchers, Aladwan, Bhunupgopan, & Fish, the few available 129 HRM Jordanian studies are not based on empirically-based but tend to be anecdotal in nature. Consequently, little concrete information exists to chart an effective awareness of either current or future HRM strategies or practices in the Middle East (2014). More fundamentally, structural barriers exists as well. Some of the local challenges that confronted the region included the very rapid demographic shift in the population, the varying oil prices, the glaring extremes of wealth, inadequate educational system and a very large semi illiterate population, and less than assertive governments that failed to bring long-term and short-term changes (Harry, 2007). To begin, there must be some recognition of the diversity of the Middle East. The three main areas are so-called because of the legacy of colonization and European statecraft. The Levant consists of the geographical region that includes Israel, Palestine, Syria, Jordan and Lebanon. This area has a very long history tied to Europe going back centuries to the Crusades and the Holy Roman Empire. The Gulf regions comprised of the Arabian Peninsula and has only been regionally important in the past century and the discovery of oil....
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...Saint Leo University: Human resource management (HRM) as related to international business MBA 575: Global Business Management Karen Coradin August 17, 2014 Abstract Saint Leo University, founded in 1899, is a higher education institution located in the state of Florida. The University bases itself on its Benedictine tradition, and prides itself on a set of core values which are included in the institution’s mission statement. Although international business and trade is composed of various, vital elements, human resource management plays a major role in such transaction. Efficient HRM is essential for the success of any business both domestically and internationally. This research paper will address the institution’s human resource management (HRM) practices and policies on how these could be implemented or altered if Saint Leo University were to ever expand its services to Latin America. Furthermore, the paper will thoroughly analyze how Saint Leo University’s core value and mission statement is implemented in both domestic and international HR policies and procedures. Human resource management (HRM) can be defined as a set of strategic policies and procedures implemented by an organization in regards to employee’s management, performance, benefits, and success. By this, organizations and businesses can implement strategic HRM policies and procedures that best fits their needs and wants. In recent years, companies have expanded their services and production to foreign...
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