High performance work systems: a cross-cultural · PDF filePerformance and reward management:...

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ABSTRACT

Impact of HR practices on organizational outcome is undeniable. Search for effective HR

practices has given rise to the concept of High Performance Work Systems (HPWS), which is

based on recognition that certain HR practices, when implemented as a “package

value addition than when they are used separately. The needs of globalization require that HR

systems function smoothly and effectively across cultures. However, since cultural values affect

employee attitudes and behaviors, HR practices ar

successful in one country may not be as effective in another cultural setting. This paper presents

a conceptual framework to describe the interaction of various cultural dimensions with specific

HR practices which comprise the HPWS. It is hoped that this framework will enhance our

understanding of the cultural sensitivity of HPWS, thereby enabling the HR practitioners to fit

the HPWS to the cultural context of the organization.

Keywords: HPWS, HIWP, cultural sensitivity

.

Journal of International Business and Cultural Studies

High Performance Work Systems, Page

work systems: a cross-cultural perspective

Rakesh Mittal

New Mexico State University



that certain HR practices, when implemented as a “package



employee attitudes and behaviors, HR practices are culturally sensitive. Thus, a HPWS



ise the HPWS. It is hoped that this framework will enhance our


the HPWS to the cultural context of the organization.

Keywords: HPWS, HIWP, cultural sensitivity, International HRM


rmance Work Systems,

cultural perspective



that certain HR practices, when implemented as a “package” lead to more



e culturally sensitive. Thus, a HPWS



ise the HPWS. It is hoped that this framework will enhance our


INTRODUCTION

A fundamental principle of Human Resource Management (HRM) is that the way people

are managed in an organization contributes to its sustenance and success. HRM research over the

past two decades has indicated that there may be certain HR practices, which i

effectiveness and predict higher levels of organizational performance (Arthur, 1994; Huselid,

1995). Variously referred to as High Performance Work Systems (HPWS), High Involvement

Work Practices (HIWP), or High performance HRM, the central

that organizations can achieve high performance by adopting practices that recognize and

leverage employees’ ability to create value.

If it is possible to identify a bundle of HR practices which promote organizational

performance, a natural question is to ask whether such practices can be replicated in different

nations and societal cultures? Conceivably, such “best HR practices” achieve the desired

organizational outcome by affecting employee attitudes and behavior. Since

background of a person plays an important part in shaping his behavior, it seems reasonable to

infer that High Performance Work Systems (HPWS) successful in one country or cultural

context cannot be easily replicated in other societies. Howeve

the subject does not seem to have paid adequate attention to the cultural aspect of HPWSs. The

purpose of this paper is to examine how individual cultural dimensions might interact with and

influence important HR practices. It is hoped that the conceptual framework presented here

would enhance our understanding of cross

HIGH PERFORMANCE WORK SYSTEMS

HR researchers and practitioners have traditionally been subject to criticism that HR does

not add value to the organization (Drucker, 1954). However, post 1990s research has firmly

attempted to establish that progressive HR practices result in higher org

In a ground-breaking study, Huselid (1995) demonstrated that a set of HR practices he referred to

as high performance work systems (HPWS), were related to turnover, accounting profits, and

firm market value. Since then, a number of

& Lepak, 1996) have shown similar positive relationships between HR practices and various

measures of firm performance. More recent research (Batt, 2002; Way, 2002; Zacharatos,

Barling, & Iverson, 2005), has also confirmed a positive relationship between HPWS and

organizational performance.

Such “best HR practices” have variously been referred to as High Performance Work

Systems (HPWS), High Performance Work Practices (HPWP), High Involvement Work

Practices (HIWP), High Performance HRM etc. Although there are some subtle differences

among these HR systems, this paper uses

basic philosophy and practices of these systems.

but interconnected human resource (HR) practices designed to enhance employees’ skills and

effort (Datta, Guthrie, & Wright, 2005). Although a precise definition of H

formulate, it is generally agreed that these practices i

incentives, and knowledge-sharing mechanisms, and that these practices are most effective when

implemented in bundles due to their cumulative effects (MacDuffie, 1995).





past two decades has indicated that there may be certain HR practices, which improve employee



Work Practices (HIWP), or High performance HRM, the central argument behind these labels is


leverage employees’ ability to create value.


ormance, a natural question is to ask whether such practices can be replicated in different


organizational outcome by affecting employee attitudes and behavior. Since the cultural


that High Performance Work Systems (HPWS) successful in one country or cultural

context cannot be easily replicated in other societies. However, the growing body of literature on



ces. It is hoped that the conceptual framework presented here

would enhance our understanding of cross-cultural sensitivity of HPWS.

HIGH PERFORMANCE WORK SYSTEMS



attempted to establish that progressive HR practices result in higher organizational performance.

breaking study, Huselid (1995) demonstrated that a set of HR practices he referred to


firm market value. Since then, a number of studies (Delery & Doty, 1996; Youndt, Snell, Dean,



also confirmed a positive relationship between HPWS and



es (HIWP), High Performance HRM etc. Although there are some subtle differences

this paper uses these terms interchangeably as representative of the

and practices of these systems. Specifically, HPWS refer to a grou


effort (Datta, Guthrie, & Wright, 2005). Although a precise definition of HPWS is difficult to

t is generally agreed that these practices include selection, training, mentoring,

sharing mechanisms, and that these practices are most effective when

implemented in bundles due to their cumulative effects (MacDuffie, 1995).





mprove employee



argument behind these labels is



ormance, a natural question is to ask whether such practices can be replicated in different


the cultural


that High Performance Work Systems (HPWS) successful in one country or cultural

r, the growing body of literature on



ces. It is hoped that the conceptual framework presented here



anizational performance.

breaking study, Huselid (1995) demonstrated that a set of HR practices he referred to


studies (Delery & Doty, 1996; Youndt, Snell, Dean,



also confirmed a positive relationship between HPWS and



es (HIWP), High Performance HRM etc. Although there are some subtle differences

terms interchangeably as representative of the

Specifically, HPWS refer to a group of separate


PWS is difficult to

nclude selection, training, mentoring,

sharing mechanisms, and that these practices are most effective when

INTERNATIONAL HRM AND CULTURE

Considering the desirability of adopting HPWS for improved organizational performance,

the next question is whether the HR practices identified in a successful HPWS can be universally

applicable? A prudent answer must be in the negative. Internationalization of any HR

fraught with risks, given the cultural differentiation amongst nations and societies. Fuelled by the

imperatives of globalization, a separate and rich stream of research on International Management

has devoted considerable attention to cross

impact on business practices and decision. This body of literature incorporates several

comparative HRM studies, which concluded that national culture is a decisive factor in shaping

HRM (Heijltjes, Van Witteloostuijn, & Sorge, 1996; Sparrow, Schuler, & Jackson, 1994).

In view of the now accepted HPWS

becomes apparent. And culture being a multi

which would be salient in defining the attitudes, beliefs and practices of the employees, but

the organizational culture. It has been argued that where the corporate culture is not fully

embedded in the home country culture, such as for a Multi National corporation (MNC), the

organizational culture could be more proximal

2010).

The transportability of HR practices across cultures is particularly salient for Multi

National Corporations (MNCs), which operate in different country cultures but need to maintain

congruence in their HR systems. In a study of subsidiaries of US MNCs in

countries, Gooderham, Nordhaug & Ringdal (2006)

cultural distance between the MNC country

harder it is to transfer HR practices. Although it is

the home country, it is the national culture, among others, that defines the accepted behaviors

and the practices that can be implemented in each context, such as rewards, overtime, work

during religious holidays, and others (Schuler, Dowling, & De Cieri, 1993).

If HPWS is seen as a source of potential competitive advantage for firms, the cross

cultural dimensions of the “best HR practices” need to be explored for replicating successful

HPWS in different contexts and cultures. Surprisingly however, researchers on HPWS do not

seem to have devoted adequate attention these issues. Although considerable progress has been

made in past years towards globalization of psychological measures used in HR systems

(Aguinis, Henley, & Ostroff, 2001; Cascio & Aguinis, 2008), the focus has mainly been on

developing culture-specific measures, and not on the cross cultural dimensions of HPWS.

DIMENSIONS OF NATIONAL CULTURE

One of the earliest significant attempts to study national

made by Geert Hofstede (1980, 1991), whose model has been the base of numerous studies in the

area of management research, due to its simplicity (Kirkman, Lowe, & Gibson, 2006).

Hofstede’s cultural value dimensions (Hofstede,

below:

POWER DISTANCE: Power Distance is the extent to which the members of society accept

unequal distribution of power. People in high Power Distance societies accept a hierarchical

order which needs no further justification for power inequalities. This affects the behavior of

both less powerful and more powerful members.



INTERNATIONAL HRM AND CULTURE

he desirability of adopting HPWS for improved organizational performance,


applicable? A prudent answer must be in the negative. Internationalization of any HR



has devoted considerable attention to cross-cultural differences amongst countries and their



oostuijn, & Sorge, 1996; Sparrow, Schuler, & Jackson, 1994).

In view of the now accepted HPWS – performance linkage, the crucial role of culture

becomes apparent. And culture being a multi-layered concept, it is not only the national culture

e salient in defining the attitudes, beliefs and practices of the employees, but

. It has been argued that where the corporate culture is not fully


more proximal to determining employees’ attitudes (Mittal,



congruence in their HR systems. In a study of subsidiaries of US MNCs in some European

Gooderham, Nordhaug & Ringdal (2006) found that the greater the institutional and

cultural distance between the MNC country-of-origin and the host country of the subsidiary, the

harder it is to transfer HR practices. Although it is usual for HRM strategy to be formulated in



, and others (Schuler, Dowling, & De Cieri, 1993).

If HPWS is seen as a source of potential competitive advantage for firms, the cross


and cultures. Surprisingly however, researchers on HPWS do not



ley, & Ostroff, 2001; Cascio & Aguinis, 2008), the focus has mainly been on

specific measures, and not on the cross cultural dimensions of HPWS.

DIMENSIONS OF NATIONAL CULTURE

One of the earliest significant attempts to study national and organizational culture was



Hofstede’s cultural value dimensions (Hofstede, 1980; Hofstede & Bond, 1988) are described

: Power Distance is the extent to which the members of society accept


justification for power inequalities. This affects the behavior of

both less powerful and more powerful members.



he desirability of adopting HPWS for improved organizational performance,


applicable? A prudent answer must be in the negative. Internationalization of any HR practice is



ltural differences amongst countries and their



oostuijn, & Sorge, 1996; Sparrow, Schuler, & Jackson, 1994).

performance linkage, the crucial role of culture

layered concept, it is not only the national culture

e salient in defining the attitudes, beliefs and practices of the employees, but also

. It has been argued that where the corporate culture is not fully


to determining employees’ attitudes (Mittal,



some European

found that the greater the institutional and

origin and the host country of the subsidiary, the

usual for HRM strategy to be formulated in



If HPWS is seen as a source of potential competitive advantage for firms, the cross-


and cultures. Surprisingly however, researchers on HPWS do not



ley, & Ostroff, 2001; Cascio & Aguinis, 2008), the focus has mainly been on

specific measures, and not on the cross cultural dimensions of HPWS.

and organizational culture was



1980; Hofstede & Bond, 1988) are described

: Power Distance is the extent to which the members of society accept


justification for power inequalities. This affects the behavior of

INDIVIDUALISM - COLLECTIVISM

social frame work in society, whereas Collectivism stan

social framework. The key issue is the degree of interdependence a society maintains among

individuals.

UNCERTAINTY AVOIDANCE

society feel comfortable with uncertainty and ambiguity. Strong Uncertainty Avoidance societies

maintain rigid codes of belief and behavior. They protect conformity but are intolerant of

deviance. Weak Uncertainty Avoidance societies maintain a more relaxed atmosphere and

deviance is more easily tolerated.

MASCULINITY - FEMININITY

achievement, heroism, assertiveness, and material success. Its opposite, Femininity, stands for a

preference for relationships, modesty, caring for the weak,

fundamental issue addressed by this dimension is the way in which a society allocates social (as

opposed to biological) roles to the sexes.

LONG VERSUS SHORT TERM ORIENTATION

mode of the society. It focuses on the degree to which the society embraces long

to traditional, forward thinking values.

GLOBE CULTURAL DIMENSIONS

The GLOBE (Global Leadership and Organizational Behavior Effectiveness) project, in a

multi-nation study of relationships between organizational leadership, societal and organizational

culture identified nine cultural dimensions (House, 2004)

(societal) and Collectivism-II (in

Future Orientation, Humane Orientation, Assertiveness, and Gender Egalitarianism. The first

three dimensions are similar to, and based on dimensions identified by Hofstede.

felt that Power Distance, Collectivism and Uncertainty

cultural dimensions. Propelled by this reasoning,

between culture and HPWS around these three major

HPWS PRACTICES

Although it is difficult to

should be part of an HPWS, a study of literature on the subject is suggestive of following

important HR practices which are involved in an HPWS:

Recruitment and selection: This would include metho

various categories of employees. These might be differentiated as internal and external methods

of recruitment, use of consultants and assessment centers etc. Recruitment practices are an

important component of HPWS (Gut

could influence the purpose, criteria and other aspects of recruitment and selection process

(Aycan, 2003).

Training and development: Extensive training & development has been identified as a

core component of high commitment work practices (Pfeffer, 1998). However, this HR practice

encompasses a wide array of activities such as training needs assessment, purpose and

importance of training, training methods etc. This would also include career managemen

practices such as use of formal career plans and succession plans.



COLLECTIVISM: Individualism stands for a preference for a loosely knit

frame work in society, whereas Collectivism stands for a preference for a tightly knit


UNCERTAINTY AVOIDANCE: Uncertainty Avoidance is the degree to which members of a

ncertainty and ambiguity. Strong Uncertainty Avoidance societies



re easily tolerated.

FEMININITY: Masculinity stands for a preference in society for

heroism, assertiveness, and material success. Its opposite, Femininity, stands for a

relationships, modesty, caring for the weak, and the quality of life. The


opposed to biological) roles to the sexes.

LONG VERSUS SHORT TERM ORIENTATION: This dimension deals with the temporal

society. It focuses on the degree to which the society embraces long

to traditional, forward thinking values.

GLOBE CULTURAL DIMENSIONS


y of relationships between organizational leadership, societal and organizational

culture identified nine cultural dimensions (House, 2004); Power Distance, Collectivism

II (in-group), Uncertainty Avoidance, Performance Orientation,


three dimensions are similar to, and based on dimensions identified by Hofstede.

Power Distance, Collectivism and Uncertainty Avoidance are the most universal of all

cultural dimensions. Propelled by this reasoning, this paper situates the framework of interaction

between culture and HPWS around these three major cultural dimensions.

Although it is difficult to exactly pinpoint and define the specific HR practices which


important HR practices which are involved in an HPWS:

Recruitment and selection: This would include methods of recruitment and selection for



important component of HPWS (Guthrie, 2001). The HRM literature recognizes that culture



ponent of high commitment work practices (Pfeffer, 1998). However, this HR practice


importance of training, training methods etc. This would also include career managemen

practices such as use of formal career plans and succession plans.



: Individualism stands for a preference for a loosely knit

ds for a preference for a tightly knit


: Uncertainty Avoidance is the degree to which members of a

ncertainty and ambiguity. Strong Uncertainty Avoidance societies



: Masculinity stands for a preference in society for

heroism, assertiveness, and material success. Its opposite, Femininity, stands for a

and the quality of life. The


: This dimension deals with the temporal

society. It focuses on the degree to which the society embraces long-term devotion


y of relationships between organizational leadership, societal and organizational

Power Distance, Collectivism-I

Orientation,


three dimensions are similar to, and based on dimensions identified by Hofstede. It is therefore

Avoidance are the most universal of all

framework of interaction

exactly pinpoint and define the specific HR practices which


ds of recruitment and selection for



hrie, 2001). The HRM literature recognizes that culture



ponent of high commitment work practices (Pfeffer, 1998). However, this HR practice


importance of training, training methods etc. This would also include career management

Performance and reward management: The HRM literature supports a strong linkage

between performance management practices, as part of HPWS, and organizational performance

(den Hartog, Boselie, & Paauwe, 2004; Fletcher, 2001). These practices would include

performance appraisal mechanisms, compensation issues and reward systems.

Knowledge-sharing mechanisms and communication: HR practices dealing with the way

information is handled in an organization are one of the most important constituents of HPWS

(Messersmith & Guthrie, 2010; Preuss, 2003). These would include downward and upward

communication in an organization, joint consultative mechanisms etc.

DISCUSSION

A discussion of each cultura

practices follows. It may be mentioned that only those interactions are discussed, which were

considered salient enough to merit attention. The framework described here is far from

exhaustive, but only demonstrative of the approach

cultural differentiation of HPWS mechanisms.

POWER DISTANCE AND HPWS

Power distance is an important cultural dimension which directly affects people’s

attitudes and behaviors. Since it deals with the way a culture treats differential distribution of

power, power distance is expected to be significantly related to communication practices,

recruitment methods, PA and compensation systems, and importance assigned to training and

development activities. Some of these interactions are described below.

In high power distance societies

disdain – as individuals who need not have any meaningful voice in decisions and planning

functions which are supposed to be carried out by senior mangers high up in the power and

hierarchy chain. It directly follows that high power distance cultures would tend to prefer

impersonal and non-direct means of downward communication. Similarly, direct upward

communication practices would be discouraged. The same logic would dictate that unions, joint

consultative mechanisms and participatory management practices would not be preferred. This

line of reasoning can be expressed in the form of following proposition:

P1a: Direct downward or upward communication practices, as also employee

consultative mechanisms will not be the preferred communication practices in high

power distance societies

Choice of recruitment method is another area to be impacted by power distan

pointed out by Budhwar & Khatri (2001), high power distance cultures tend to place greater

importance on ascribed status and socio

Therefore, external sources of recruitment which focus on later are

societies.

P1b: High power distance societies would prefer to recruit managers internally, rather

than using external methods for recruitment.

The type of Performance appraisal (PA) system and its use is also expected to be d

related to power distance. There is some evidence that upward evaluations are likely to be

distorted in high power distance

Since HPD cultures foster low communication and disregard for sub





lie, & Paauwe, 2004; Fletcher, 2001). These practices would include

performance appraisal mechanisms, compensation issues and reward systems.

sharing mechanisms and communication: HR practices dealing with the way

anization are one of the most important constituents of HPWS


communication in an organization, joint consultative mechanisms etc.

each cultural dimension and how it might interact with different HPWS

It may be mentioned that only those interactions are discussed, which were

salient enough to merit attention. The framework described here is far from

nly demonstrative of the approach that could be adopted to understand the

cultural differentiation of HPWS mechanisms.

POWER DISTANCE AND HPWS


e it deals with the way a culture treats differential distribution of



pment activities. Some of these interactions are described below.

In high power distance societies (HPD), managers tend to treat their subordinate with

as individuals who need not have any meaningful voice in decisions and planning

ich are supposed to be carried out by senior mangers high up in the power and


direct means of downward communication. Similarly, direct upward

mmunication practices would be discouraged. The same logic would dictate that unions, joint


line of reasoning can be expressed in the form of following proposition:



Choice of recruitment method is another area to be impacted by power distan


importance on ascribed status and socio-economic connections, rather than on merit alone.

Therefore, external sources of recruitment which focus on later are less likely to be used in HPD


than using external methods for recruitment.

The type of Performance appraisal (PA) system and its use is also expected to be d


ed in high power distance societies (Mittal & Saran, 2010; Varela & Premeaux, 2008).

Since HPD cultures foster low communication and disregard for subordinates, performance





lie, & Paauwe, 2004; Fletcher, 2001). These practices would include

sharing mechanisms and communication: HR practices dealing with the way

anization are one of the most important constituents of HPWS


l dimension and how it might interact with different HPWS

It may be mentioned that only those interactions are discussed, which were

salient enough to merit attention. The framework described here is far from

to understand the


e it deals with the way a culture treats differential distribution of



, managers tend to treat their subordinate with

as individuals who need not have any meaningful voice in decisions and planning –

ich are supposed to be carried out by senior mangers high up in the power and


direct means of downward communication. Similarly, direct upward

mmunication practices would be discouraged. The same logic would dictate that unions, joint




Choice of recruitment method is another area to be impacted by power distance. As


economic connections, rather than on merit alone.

less likely to be used in HPD


The type of Performance appraisal (PA) system and its use is also expected to be directly


societies (Mittal & Saran, 2010; Varela & Premeaux, 2008).

ordinates, performance

appraisal practices incorporating evaluations by subordinates would not be encouraged.

Similarly, because the attitude of subordinates towards their bosses is of submissiveness and

servitude, self-appraisal practices would not be giv

practices in low power distance cultures. Multi

increasingly used in the context of HPWS (Church, 1997). But these may not be suitable in HPD

societies. The following proposition is offered

P1c: High power distance societies would not prefer multi

performance appraisal, in contrast to low power distance cultures.

Training and development is yet another important component of HPWS (Pfeffer, 199

Although, this HR practice encompa

management training, because of its importance in HPWS.

quality management training is bound to be perceived different

because the key characteristics of total quality management (TQM), such as emphasis on group

facilitation, employee empowerment and customer feedback (Reger, Gustafson, Demarie, &

Mullane, 1994) etc. are clearly incongruen

societies. It is therefore reasonable to expect

training in high power distance societies would be comparatively less.

following proposition is proposed

P1d: High Power distance societies would ascribe relatively less importance to quality

management training in an organization.

INDIVIDUALISM – COLLECTIVISM AND HPWS

Individualism characterizes a society where ties between individuals are loose; individual

responsibility is paramount. The individual expects to garner rewards based on achievement or

merit. People from individualistic societies prefer clarity in their co

more effectively. Employees are expected to defend their interests and to promote themselves

whenever possible. For this reason they would expect to maintain effective and clear

communication with their bosses, receive feedback a

favor direct communication practices, both downward and upward, to facilitate each individual

to achieve his goal. On the other hand, in collectivistic societies people are integrated into strong

cohesive in-group. Accolades, achievements, and rewards are due to the group, not to the

individual (Jung & Avolio, 1999). Members of collectivistic societies believe in the desirability

of rules, do not question leaders' decisions, and prefer to abide by convention unles

instructed (Gallois & Callan, 1997; Trompenaars, 1993).

between people in collectivistic societies could obviate the need to have formal communication

practices, whereas such practices are likely to be accorded

individualistic cultures. This would be in congruence with the HPWS arrangements.

P2a: Individualistic societies would favor well defined and effective channels of

multidirectional communication in organizations, in congr

arrangements.

Cultural attitudes towards recruitment and selection also differ. If

Vs external sources of recruitment for middle and senior

individualistic and collectivistic societies would have differing preferences for methods of

recruitment. The primary aim of recruiters in an individualistic society would be to get the “best”

person for the job, in terms of Knowledge, skills and ability.





appraisal practices would not be given as much importance, as is given to such

practices in low power distance cultures. Multi-source feedback PA systems are being


proposition is offered:

P1c: High power distance societies would not prefer multi-source feedback system of

performance appraisal, in contrast to low power distance cultures.

Training and development is yet another important component of HPWS (Pfeffer, 199

, this HR practice encompasses a wide array of activities, this paper focuses on

management training, because of its importance in HPWS. It is argued that the importance of

quality management training is bound to be perceived differently in different cultures. This is



Mullane, 1994) etc. are clearly incongruent with the practices prevalent in high power distance

It is therefore reasonable to expect that the importance given to quality management

training in high power distance societies would be comparatively less. Accordingly, the

ion is proposed:


management training in an organization.

COLLECTIVISM AND HPWS



merit. People from individualistic societies prefer clarity in their conversations to communicate



communication with their bosses, receive feedback and merit awards. These traits would seem to



p. Accolades, achievements, and rewards are due to the group, not to the


of rules, do not question leaders' decisions, and prefer to abide by convention unles

instructed (Gallois & Callan, 1997; Trompenaars, 1993). It is submitted that strong bonds


practices, whereas such practices are likely to be accorded more prominence and importance in



multidirectional communication in organizations, in congruence with HPWS

Cultural attitudes towards recruitment and selection also differ. If one consider

Vs external sources of recruitment for middle and senior-level managers, one would expect that



person for the job, in terms of Knowledge, skills and ability. In order to have a wider choice, and





en as much importance, as is given to such

source feedback PA systems are being


source feedback system of

Training and development is yet another important component of HPWS (Pfeffer, 1998).

sses a wide array of activities, this paper focuses on quality

that the importance of

ly in different cultures. This is



t with the practices prevalent in high power distance

that the importance given to quality management

Accordingly, the




nversations to communicate



nd merit awards. These traits would seem to



p. Accolades, achievements, and rewards are due to the group, not to the


of rules, do not question leaders' decisions, and prefer to abide by convention unless otherwise

that strong bonds


more prominence and importance in



uence with HPWS

considers internal

would expect that



In order to have a wider choice, and

hence more chances of getting the right person, external methods of recruitment may be

preferred in an individualistic society. On the other hand, in collectivistic cultures organizations

are generally treated as a family and it is important for new appointees to easily integrate in the

existing networks. It is frequently difficult for externally recruited candidates to get into strong

social networks and overcome the resistance following their appointment (Björkman & L

1999). For this reason therefore, other things being equal, collectivistic cultures would tend to

prefer internal recruitment over external processes.

P2b: Collectivistic societies would prefer to recruit managers internally,

external methods for recruitment.

Individualism-collectivism also interacts with performance management practices. Given

the emphasis on group loyalty and subordination of individual goals to group, it is conceivable

that collectivistic societies may not prefer individual merit

of pay at individual level based on performance

western cultures. It can be argued

collectivistic societies needs to focus on teams rather than individuals, for a successful HPWS.

The following proposition is offered:

P2c: Collectivistic societies would prefer performance and reward management systems

which focus on group tasks and need

rewards

As regards training and development activities,

more closely associated with the type of culture embodied by TQM practices. TQM implies

teamwork, cross-functional cooperation, and employee cooperation and involvement at every

level of the organizations (Evans & Lindsay, 1999; Lau & Anderson, 1998). Given such a strong

link between ingredients of collectivistic culture and TQM,

collectivistic societies, with their high emphasis on group

consider the training on these issues more important than individualistic societies.

propostion is offered:

P2d: As compared to Individual

emphasis on quality management training.

UNCERTAINTY AVOIDANCE AND HPWS

The tolerance of societies for uncertainty has an impact on the way they deal with

communication practices in an organizational context. Societies, which are high in uncertainty

avoidance, are not comfortable with uncertain situations. Therefore, the communication practices

in such societies would seek to minimize uncertainty at every level in the organizations. This

means that direct communications, both downward and upward, would be favored, preferably

through a formalized interaction structure. They would also make use of multiple channels of

communication, such as email, management briefings etc. Similarly, commun

unions, could be formalized and the joint consultative mechanism more effective. Societies,

which are low in uncertainty avoidance, may not give much importance to formal methods of

communication. Being more open to unstructured ideas and inte

formalized structures for dialogue with employees.

P3a: Societies high in uncertain avoidance would place greater importance on formal

organizational communications, both downwards and upwards.





ily and it is important for new appointees to easily integrate in the


social networks and overcome the resistance following their appointment (Björkman & L


prefer internal recruitment over external processes. The following is proposed:

P2b: Collectivistic societies would prefer to recruit managers internally, rather than using

external methods for recruitment.

collectivism also interacts with performance management practices. Given


ocieties may not prefer individual merit-based reward system or determination

of pay at individual level based on performance – practices which are prevalent in HPWS in

It can be argued that the performance and reward management system in


The following proposition is offered:


which focus on group tasks and needs, rather than on individuals for determining pay and

As regards training and development activities, it is suggested that collectivist culture is


functional cooperation, and employee cooperation and involvement at every


link between ingredients of collectivistic culture and TQM, it is reasonable to belie

collectivistic societies, with their high emphasis on group-centered activities and goals would

consider the training on these issues more important than individualistic societies.

P2d: As compared to Individualistic societies, Collectivistic societies would place greater

emphasis on quality management training.

UNCERTAINTY AVOIDANCE AND HPWS


organizational context. Societies, which are high in uncertainty





communication, such as email, management briefings etc. Similarly, communication with



communication. Being more open to unstructured ideas and interactions, they may not need

formalized structures for dialogue with employees. The following is proposed:


organizational communications, both downwards and upwards.





ily and it is important for new appointees to easily integrate in the


social networks and overcome the resistance following their appointment (Björkman & Lu,


rather than using

collectivism also interacts with performance management practices. Given


based reward system or determination

practices which are prevalent in HPWS in

that the performance and reward management system in



s, rather than on individuals for determining pay and

that collectivist culture is


functional cooperation, and employee cooperation and involvement at every


it is reasonable to believe that

centered activities and goals would

consider the training on these issues more important than individualistic societies. The following

istic societies, Collectivistic societies would place greater


organizational context. Societies, which are high in uncertainty





ication with



ractions, they may not need


Let us now examine the likely impact of the cultural dimension of uncertainty avoidance

on recruitment practices. Societies high in uncertainty avoidance (low tolerance for uncertainty)

would like to recruit people with a focus on abilities and potential, in orde

safeguard for future performance. They would prefer a recruitment process with high predictive

validity - which can reassure them that the new appointee was the best available performer, thus

reducing the uncertainty about the future outcome

societies with low tolerance for uncertainty could prefer external recruitment methods, such as

assessment centers for example, over internal recruitment practices. Accordingly,

is submitted:

P3b: Societies high in uncertainty avoidance would prefer to use external recruitment

practices with high predictive validity.

The impact of the cultural dimension of Uncertainty Avoidance on performance

management practices is expected to be minimal because su

increase or decrease in uncertainty. At a marginal level, however,

societies high in uncertainty avoidance would tend to use the PA system for a variety of

purposes, such as promotion, pay dete

because in an attempt to reduce uncertainty, decisions would seek to be taken with maximum

inputs in such cultures; the inputs provided by the PA system would be useful. Accordingly

following is proposed:

P3c: Societies high in uncertainty avoidance would place greater emphasis on the

importance given to various uses of a performance management system.

Extensive training & development has been identified as a core component of high

commitment work practices (Pfeffer, 1998). Though this field encompasses a wide array of

activities such as training needs assessment, purpose and importance of training, training

methods etc., this paper focuses on quality management training, because of its importa

HPWS. Examining this issue in the context of the culture dimension of uncertainty avoidance,

is argued that societies high in uncertainty avoidance would be more receptive to TQM since

they generally have a system of rules and procedures

societies would tend to assign greater importance to TQM training, than societies low in

uncertainty avoidance which have a more flexible and tolerant outlook.

proposition is offered:

P3d: Quality management trainin

avoidance societies than in low uncertainty avoidance cultures.

CONCLUSIONS AND SUGGESTIONS FOR FUTURE RESEARCH

In the preceding paragraphs

dimensions to some specific HR practices

HPWS seems to be negatively indicated in societies which are high in Power Distance and

Collectivism but low in Uncertainty Avoida

societies low in Power distance and Collectivism but high in Uncertainty avoidance

Scandinavian countries, could be good candidates for HPWS. However, the framework

suggested in this paper can be use

and design culture-specific HPWS packages for greater acceptance and efficacy



now examine the likely impact of the cultural dimension of uncertainty avoidance


would like to recruit people with a focus on abilities and potential, in order to provide a


which can reassure them that the new appointee was the best available performer, thus

reducing the uncertainty about the future outcome. This line of reasoning would indicate that


assessment centers for example, over internal recruitment practices. Accordingly,

Societies high in uncertainty avoidance would prefer to use external recruitment

practices with high predictive validity.


management practices is expected to be minimal because such practices do not directly relate to

increase or decrease in uncertainty. At a marginal level, however, it could be argued that


purposes, such as promotion, pay determination and assessment of training needs. This is


inputs in such cultures; the inputs provided by the PA system would be useful. Accordingly


importance given to various uses of a performance management system.


work practices (Pfeffer, 1998). Though this field encompasses a wide array of


on quality management training, because of its importa

HPWS. Examining this issue in the context of the culture dimension of uncertainty avoidance,

that societies high in uncertainty avoidance would be more receptive to TQM since

they generally have a system of rules and procedures – a prerequisite of TQM. Thus such


uncertainty avoidance which have a more flexible and tolerant outlook. The following

P3d: Quality management training would be given more importance in high uncertainty

avoidance societies than in low uncertainty avoidance cultures.

CONCLUSIONS AND SUGGESTIONS FOR FUTURE RESEARCH

In the preceding paragraphs an effort has been made to relate the major cultural

HR practices that are considered to be a part of HPWS.

negatively indicated in societies which are high in Power Distance and

Collectivism but low in Uncertainty Avoidance, such as India or China. On the other hand,

societies low in Power distance and Collectivism but high in Uncertainty avoidance

uld be good candidates for HPWS. However, the framework

suggested in this paper can be used by HR practitioners to evaluate the culture-HR interaction

specific HPWS packages for greater acceptance and efficacy.



now examine the likely impact of the cultural dimension of uncertainty avoidance


r to provide a


which can reassure them that the new appointee was the best available performer, thus

. This line of reasoning would indicate that


assessment centers for example, over internal recruitment practices. Accordingly, the following

Societies high in uncertainty avoidance would prefer to use external recruitment


ch practices do not directly relate to

it could be argued that


rmination and assessment of training needs. This is


inputs in such cultures; the inputs provided by the PA system would be useful. Accordingly the



work practices (Pfeffer, 1998). Though this field encompasses a wide array of


on quality management training, because of its importance in

HPWS. Examining this issue in the context of the culture dimension of uncertainty avoidance, it

that societies high in uncertainty avoidance would be more receptive to TQM since

equisite of TQM. Thus such


The following

g would be given more importance in high uncertainty

to relate the major cultural

considered to be a part of HPWS. Prima facie,

negatively indicated in societies which are high in Power Distance and

nce, such as India or China. On the other hand,

societies low in Power distance and Collectivism but high in Uncertainty avoidance, such as

uld be good candidates for HPWS. However, the framework

HR interaction

.

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