BUSN3025 Seminar 4 Comparative HRM

8/7/2019 BUSN3025 Seminar 4 Comparative HRM

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Copyright 2003Copyright 2003--2006, Chris Chan2006, Chris Chan

Comparative HRM:Comparative HRM:

Theory & PracticeTheory & Practice


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Universalism vs ContextualUniversalism vs Contextual

UniversalismUniversalism--Contextual debateContextual debate

Is there a best practice approach?Is there a best practice approach? Convergence as a 3Convergence as a 3rdrd alternativealternative


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Labor lawsLabor laws

Ever changingEver changing

HR needs to keep upHR needs to keep up Recognize differencesRecognize differences

Gained importance during theGained importance during theIndustrial Revolution by SocialistsIndustrial Revolution by Socialists

Losing importance or relevance?Losing importance or relevance?


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Major issues coveredMajor issues covered Minimum wageMinimum wage -- Introduced in the US (1938),Introduced in the US (1938),

France (1950) and the UK (1999); 18 out of 25France (1950) and the UK (1999); 18 out of 25member states in the EUmember states in the EU

Minimum ageMinimum age M

aternity protectionM

aternity protection Occupational Health & SafetyOccupational Health & Safety Termination of employmentTermination of employment Very general guidelines and exceptions allowedVery general guidelines and exceptions allowed Up to various member states ministries to interpretUp to various member states ministries to interpret

and refine these guidelinesand refine these guidelines E.g. New Employment Contract (E.g. New Employment Contract (Contrat nouvelleContrat nouvelleembaucheembauche) overturned but around 400000 have signed) overturned but around 400000 have signed

Convention No. 158, ILOConvention No. 158, ILO


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HoursHours

PrePre--industrial: 11industrial: 11--14 hrs p.w.14 hrs p.w.

Industrial: 14Industrial: 14--16 hrs p.

w.

16 hrs p.

w.

18331833 England passed the 8England passed the 8--hr p.w.hr p.w.

law, 12 hrs for miners and 8 hrs forlaw, 12 hrs for miners and 8 hrs forchildrenchildren


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Labor laws and reforms inLabor laws and reforms in

AsiaAsia Severe Acute Respiratory Syndrome (SARS) Bayer (China) Ltd. - extensive travel

guidelines and office evacuation proceduresin response to SARS. Bayer SARS Team responsible for monitoring the disease andmaking policy changes

Increasing sophistication of HR

Revising labor laws to protect employees Bringing regulations to international

standards

www.shrmglobal.org


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AsiaAsia E.g. China - Bill to provide on-the-job injury

insurance to workers, encouraging greater

education and training of employees E.g. Thailand government - tax deduction

for employee training and education costs,encourage companies to invest in the

intellectual and skills development ofemployees

Use of videoconferencing to interview jobapplicants in China

www.shrmglobal.org


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AsiaAsia Issuing of Chinese Green Cards (tax breaks,

concessions, attracting overseas Chinese)

Setting up child care facilities in organizations e.g.Setting up child care facilities in organizations e.g.Nippon Yusen KK, a shipping company, ToyotaNippon Yusen KK, a shipping company, Toyota(accommodate up to 25 children),(accommodate up to 25 children),

ReduceReduce karoshikaroshi in Japan and emphasis on quality ofin Japan and emphasis on quality of

work life in generalwork life in general www.shrmglobal.org


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AsiaAsia South KoreaSouth Korea employees contributing toemployees contributing to

corporate pension fundcorporate pension fund fund agingfund agingpopulationpopulation

Companies with 300 or more employeesCompanies with 300 or more employeesmust have a 2% quota to hire disabledmust have a 2% quota to hire disabledpeoplepeople may extend to org with 50+may extend to org with 50+people by 2007people by 2007

PenaltyPenalty US$326 per position per monthUS$326 per position per month BanksBanks changing from 6changing from 6--day week to 5day week to 5--dayday

weekweek Knowledge workforce in South East AsiaKnowledge workforce in South East Asia

www.shrmglobal.org


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Inefficient use of laborInefficient use of labor

Keeping people for the sake of minimizingKeeping people for the sake of minimizingunemploymentunemployment

Discrimination of womenDiscrimination of women Japanese womenJapanese womenmoving to MNCsmoving to MNCs

Employment practices based on where youEmployment practices based on where yougraduated from vs performance basedgraduated from vs performance based

employment practicesemployment practices Slow in adopting eSlow in adopting e--HR (e.g. payroll, leave,HR (e.g. payroll, leave,

information)information)www.shrmglobal.org


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Equal EmploymentEqual Employment

OpportunityOpportunity Caste system in IndiaCaste system in India HarijansHarijans (lowest(lowest

caste) (15caste) (15--20% of Indias population)20% of Indias population) lower level jobs;lower level jobs; dalitsdalits

The state shall not discriminate against anyThe state shall not discriminate against anycitizen on grounds of religion, race, caste,citizen on grounds of religion, race, caste,place and birth or any formplace and birth or any form from thefrom theConstitutionConstitution

Positive change in urban vs ruralPositive change in urban vs rural Quotas for lower caste people inQuotas for lower caste people in

organizations (positive discrimination)organizations (positive discrimination)


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HR terminologies inHR terminologies in

FranaiseFranaise Job descriptionJob description -- synonymous with limitationsynonymous with limitation

of freedom and exploitationof freedom and exploitation

Intrinsic rewardsIntrinsic rewards seldom emphasized andseldom emphasized andmay be considered as flattery and mockerymay be considered as flattery and mockery

LeaderLeader used to denote politicians andused to denote politicians andhave a negative meaning. Alternativehave a negative meaning. Alternative boss or chiefboss or chief

http://www.sococo.com/frhrm.htmlhttp://www.sococo.com/frhrm.html


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ConvergenceConvergence--Divergence ofDivergence ofPerformance Appraisals inPerformance Appraisals inTaiwan, Spore and HKTaiwan, Spore and HK HK>T, S (extrinsic motivation & rewards)HK>T, S (extrinsic motivation & rewards)

S>T (group norms and individual values thanS>T (group norms and individual values thanstandard PA)standard PA)

S,T> HK (subordinate involvement in ideas &S,T> HK (subordinate involvement in ideas &decisions)decisions)

HK>S,T (uncertainty avoidanceHK>S,T (uncertainty avoidance supervision)supervision)

English in IB, cooperation (collectivism),English in IB, cooperation (collectivism),

entrepreneurial orientationentrepreneurial orientation

Paik, Y., Vance, C.M. and Stage, H.D. (1996). The extentof divergence in human resource practicePaik, Y., Vance, C.M. and Stage, H.D. (1996). The extentof divergence in human resource practiceacross three Chinese national cultures: Hong Kong, Taiwan and Singapore.across three Chinese national cultures: Hong Kong, Taiwan and Singapore. Human ResourceHuman ResourceManagement JournalManagement Journal, 6(2), 20, 6(2), 20--31.31.


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HRM emphases in 7HRM emphases in 7

European countriesEuropean countriesRole of HRMRole of HRM DenDen FrFr GerGer NetNet SpSp SwSw UKUK

Comp AdComp Ad

SHRMSHRM Decentralization ofDecentralization ofHR activitiesHR activities

Integration of HRIntegration of HRfunctionsfunctions

Individualization ofIndividualization ofemp relationshipemp relationship

Clark, T. and Pugh, D. (2000). Similarities and differences in European conceptions of human resource management. InternationalStudies ofManagement & Organizations, 29(4), 84-100.


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Work goals/values inWork goals/values in

Brunei, Msia and SporeBrunei, Msia and Spore No sig. diff (Good salary)No sig. diff (Good salary)

No sig. diff (Matching abilities andNo sig. diff (Matching abilities andexperience)experience)

No sig. diff (Job variety)No sig. diff (Job variety)

Chan, C.C.A. and Pearson, C.A.L. (2001). Comparison of managerial work goals amongChan, C.C.A. and Pearson, C.A.L. (2001). Comparison of managerial work goals amongBruneian, Malaysian and Singaporean managers.Bruneian, Malaysian and Singaporean managers. Journal ofManagement DevelopmentJournal ofManagement Development,,21(7), 54521(7), 545--556.556.


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Selection criteriaSelection criteria

Technical (3/7 Japanese, 2/10 US, 1/7Technical (3/7 Japanese, 2/10 US, 1/7German)German)

Interpersonal (2/7 J, 2/10U

S)Interpersonal (2/7 J, 2/10U

S) CrossCross--cultural (1/10 US)cultural (1/10 US) Cost considerations (1/10 US)Cost considerations (1/10 US) International capability (1/7 G)International capability (1/7 G)

Being viewed as a potential (3/7 G)Being viewed as a potential (3/7 G) Employee motivation (1/7 G)Employee motivation (1/7 G) Negotiation (1/7 J)Negotiation (1/7 J) Language (1 J)Language (1 J)

Peterson, R

.B., Napier, N

.K.and Shul-Shim, W

.(2000)

.Expatriate management: Comparison of

MNCsacross four parent countries. Thunderbird International Business Review, 42(2), 145-166.


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Women in seniorWomen in senior

managementmanagement Upward trend in UK, Aust and the USUpward trend in UK, Aust and the US

Rate of growth slower in certain countriesRate of growth slower in certain countries

Traditional views and expectations of girls andTraditional views and expectations of girls andwomenwomen

Government and ILO interventionsGovernment and ILO interventions

Profiles (marital status, no. of dependents,Profiles (marital status, no. of dependents,educational background compared to partner)educational background compared to partner)

Is Confucian ethics promoting male chauvinism?Is Confucian ethics promoting male chauvinism?

Omar, A. and Davidson, M.J. (2001). Women in management: A comparative crossOmar, A. and Davidson, M.J. (2001). Women in management: A comparative cross--cultural overview. Crosscultural overview. Cross--Cultural Management, 8(3), 35Cultural Management, 8(3), 35--67.67.


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Western organizationalWestern organizational

leadershipleadership Achievement orientationAchievement orientation

Specificity orientationSpecificity orientation

Universalistic orientationUniversalistic orientation

Secular authoritySecular authority

Ogbor, J.O. and Williams, J. (2003). The crossOgbor, J.O. and Williams, J. (2003). The cross--cultural transfer of managementcultural transfer of managementpractices: The case for creative synthesis.practices: The case for creative synthesis. Cross Cultural ManagementCross Cultural Management, 10(2), 3, 10(2), 3--23.23.


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IHRM practicesIHRM practices

Compensation: SeniorityCompensation: Seniority--based, teambased, team--based vsbased vsMeritMerit--based, individualbased, individual--basedbased

Selection: DeSelection: De--emphasize experience?emphasize experience?

Appraisal: Low (collectivist) to High (individualistic)Appraisal: Low (collectivist) to High (individualistic)

Training & development vs Outsourcing (e.g.US)Training & development vs Outsourcing (e.g.US)

SHRM: low cost and differentiation strategies (Asia)SHRM: low cost and differentiation strategies (Asia)to no linkage (Mexico)to no linkage (Mexico)

Von Glinow, M.A., Drost, E.A. and Teagarden, M.B. (2002). Converging on IHRM best practices: LessonsVon Glinow, M.A., Drost, E.A. and Teagarden, M.B. (2002). Converging on IHRM best practices: Lessonslearned from a globally distributed consortium on theory and practice.learned from a globally distributed consortium on theory and practice. Human Resource ManagementHuman Resource Management,,41(1), 12341(1), 123--140.140.


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DiscussDiscuss

Can payCan pay--forfor--performance policy be transplanted toperformance policy be transplanted toseniorityseniority--based societies?based societies?

Should and can EEO/AA policies be appliedShould and can EEO/AA policies be appliedelsewhere?elsewhere?

Degree of autonomy & how much empowerment isDegree of autonomy & how much empowerment istoo much?too much?

TrustTrust willingness to share information, cooperatewillingness to share information, cooperate

and not take advantage of another person e.g.and not take advantage of another person e.g.China (low trust), Australia (high trust)China (low trust), Australia (high trust)

Individualistic culturesIndividualistic cultures reward individualreward individualperformance vs collectivist culturesperformance vs collectivist cultures rewardrewardcollective performancecollective performance

BUSN3025 Seminar 4 Comparative HRM

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