IHRM 10 Chap.
Transcript of IHRM 10 Chap.
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Managing People in
International Context
Hard and 'Soft approaches taken within
Western Organizations both reflect an inherent
cultural concept that perceives human beingin
Organizations as ameans to end
Hard Perspective- reflectingutilitarian instrumentalism
which sees people as a resource to achieving the ends
of the organizationSoft Perspectivewhich sees people as avalued assets
capable of development, providinginputs
through participation & informed choice
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Locus of Human Value
Locus ofvalue or the worth attributed to persons
in a work organization is oriented towards those
persons in themselves rather than towards
organizational objectives as appropriate ends
Eg-Chinese business organization where f amilial
relations are important both internationally and
personal connections or networking in businessdealings(payment by seniority)
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Implications for Human
Resource Management
Eg:- Japanese firms show a higher
commitment to people & community welfare
by retaining employee through economic
downturn
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Towards a Conceptual
Approach to Managing people
Internationally
Eg- High failure rate of joint venture in China due to lack oforganizational learning,
lack of developingappropriately flexible organizational forms & work practices
Give rise to acontractualrelationship with employeewho provides his time in
exchange for wages
Give rise to acontractualrelationship with employeewho provides his time in
exchange for wages
Instrumental
CulturalPerspective
Give rise to an obligatoryrelationship ofcommitment
amongmembers of thecorporation
Give rise to an obligatoryrelationship ofcommitment
amongmembers of thecorporation
Humanistic
CulturalPerspective
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Swedish Cultural & People
Management Low in Power distance which means that
organizations tend not be hierarchical
High in Individualism (by Hofstede), low in
uncertainty avoidance
According to Gannon & Associates(1994)
Swedes are unemotionally practical, believing
that problems can be solved rationally through
the application of reason
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The Multicultural Model
It is built to understand cultural differences, rather
than trying to smooth them override them
Eg:- IBMstrong corporate culture & wide culture
variation across nations
Hofstede (1980) focuses on value system of
national cultures represented by 4 dimension:-
Power distance- inequalities among peopleUncertainty avoidance- preference for structured v/s unstructured
situation
Individualism- actingas individuals or part ofcohesive groups
Masculinity- Distinguishes hard and soft value
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Adapting the Organization
Culture
Gannon & Associates (1994) outline 3 main
facets of Swedishculture
Love of nature:- develop as an industrial nation,emphasis on engineering such as
Volvo,Saab,Ericson
Individualism through self-development - Qualityof life is important, 5 weeks holiday & 27 sick
days/year > 5(US average)
Equality same service t o every body
like Health services ensions
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Spanish Culture & Work
values Medium power distance but higher than
Sweden, less individualistic than Sweden
Very high on uncertainty avoidance(work in
same organization formany years)
High rate of FDI
IKEA entered in Spain & instillingits character &
culture Right people is regarded is one of the key of
preserving IKEA culture
Awareness is created throughintroductoryro rammes for new workers throu h IKEA seminars
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Adaptin th rganizational
ultur
Approach s to adapting th local needs 1st way to
recruit a Spanish HR managerand others are:-
Running ultur al Seminars todiscusseveryone theirexperienceopinion
Development programme toensure the
retention of talent within thecompany
Annual training plans includeno.ofoff-the job
training
Flexible salary structure toattract & retain
competent employee
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French Culture & People
Management
French is a Catholic country, which explains the
distrust of the business world, and the attachment
to the rural community, particularly in the south
Roussillon & Bournis(1997) outline the main
feature of French management :- Excessive importance of the elitist education systems (guarantee top posts
for young graduates) Highly responsible posts given str aight away to young graduates from
prestigious schools
An emphasis on the theoretical, with young executives in consultancy
position with conceptualizing responsibility rather than in an oper ational
capacity
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American Model of People
ManagementAmerican culture celebrates the high-achieving and denigrates
failure
75% of American being extrovert and Technology play a key
role in competitive specialization
Nationalism is highly celebrated & belief that anything can be
achieved by individual
Innovative wor k systems designed to increase productivity,
reduce costs & improve quality
New human resources pr actices implemented in wor k process
design
Individuals can also be trained in these competences
where they have a deficiency
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Japanese People
Management
(a)Lifetime employment
(b)Seniority- based pay and promotion
(c)In- house trade unions
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BritishModel
Learning Organization is a concept ofaction learning developed
in Britain.
The main features of Br itish management culture can be
summarized as follows A value of personal psychological privacy;
Friendliness and sincerity
Orderliness, patience and seeing a task through;
Well def ined status and roles; Love ofhumor, often as a device t o lighten the occasion;
Social control based on persuasion and appeal to sense of
guilt in transgressing social norms
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European Model of People
Managemento European organizations oper ate with restricted
autonomy: constrained at the European union level
and at the national level by culture and legislation, at
the organizational level by patterns of ownership
o Culture andLegislation:
Regulation of recruitment, dismissal and employment
contracts generally;
Legislative requirements on pay;
Formalization of educational certification;
Public funding of labormarket programmes;
More state intervention in the economy
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Patterns of ownership: Public ownership in still
generally more prevalent in European
countries than the US, and patterns of privateownership are different, including major
companies in southern Europe
Trade union involvement and consultativearrangement: American HRM has been
regarded as anti-union, yet in most European
countries union membership is high.
Employment involvement: This is common
place in European countries, with workers
councils required by the law in some countries.
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International
Context
Including European
Union
National context
Including: Culture
Political
/legislative
Economical,social
International context
HRM strategyIntegration
Development to line
Employment policies
Environmental policies
Reward policies
Work systems etc.
HRM context
Selection
PerformanceAppraisal
Reward
Development
Industrial relations
Communication etc
National HRM context
Education/trainingLabormarkets
Trade unions
Industrial relations etc.
Brewster European Model of HRM
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Chinese Model of eople
Manage entIn 1978, Chinese govern ent announced an open-door
policy and began econo ic reforms aimed at moving the
country fr om a centrally planned economy to a market
economy. PerformanceAppraisal
Performance appraisal for blue collar worker was used
less fr equently. It was informal and subjective process.
Emphasized on behaviorand attitudes subject to leadershipevaluation
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Chinese workvalues
o Hofstede in 1980 dr aws on data from Hong
Kong and Taiwan to describe Chinese
characteristics.o Its likely that such value dimensions as
Collectivism Individualism
Power Distance Uncertainty avoidance
Masculinity femininity and long term-short term
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Indian People Management
The present day mixed economy of India had
evolved through a series of policy
formulations and legislation aimed atrestrictive practices and protectionist
measures & f inally to the new economic
policy announced in July 1991
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Culture & Indian Managers
Despite the value difference among managers in the
five countries Australia, Japan, Korea, India and USA
and value diversity within each country, there is
common pattern of tr anslation of values intobehaviors across the countries. The implications of
values of Indian managers are:
Indian managers are more responsive to the human &
bureaucratic consequences of theiractions; They are more influenced by positions and approaches
which utilize philosophical and moral justifications;
They are more responsive to internal reward & controls
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