Universality of Human Resource Practices
More effective management of human resources has been increasingly being perceived as positively impacting performance in most of the organizations because of dramatic increases in global activity in the past decade. Such an increase in global performance has raised awareness in business enterprises executing its operations across borders (Stone and Deadrick 2015). Furthermore, international human resources management (IHRM) varies from domestic HRM and is encounters of higher level of intricacies because of macro environmental factors related to cultural, socio-economic and political. Such a contingency perception of the practice cultural fit model primarily focuses on the value of culture context in order to explain the outcomes of human resource management (Brewster et al. 2016). The following essay highlights the importance of cultural context in International Human Resource Management (IHRM) in contemporary business domain. In addition to this, the paper seeks to evaluate the issues of culture based on Hofstede’s cultural dimensions in order to explore the factors constituted in national cultures which impact the overall performance in organizations.
The universality of human resource practices has been inquired. Human Resource policies which may be effective in one jurisdiction may be unsuccessful in another. Brewster et al. (2016) state that while intending to attain a preferred outcome in human resource practice, remuneration or pay structures may be effectual in one nation and proves to be unconstructive in another (Luthans and Doh 2018). National cultural aspects exhibit a propensity to influence strategic decisions as well as leadership styles along with human resource management practices such as performance appraisal. In certain cultural perspectives with extensive power distance, loyalty and conformity to those in higher authority is required. Furthermore, comprehensive insights of Hofstede’s cultural dimensions have facilitated the way individuals can perceive the influence of nation’s culture on practices related to organizational performance (Deephouse, Newburry and Soleimani 2016). For instance, United Kingdom with a lower score of 35 on power distance signifies its high approval of minimizing power and status differentiations, whereas India attaining a score of 77 indicates high level of acceptance for hierarchy and top-down structure in society as well as organizations (Brewster, Chung and Sparrow 2016). These aspects further propose that individuals exhibit greater level of inclination in acknowledging upward managerial decisions in India in comparison to UK. Thus, multinational organizations executing their operations in both these nations require acclimatizing suitable management and supervisory practices along with review methods, as individuals assigned to decision-making roles reveal lower rate of tendency to receive descending advice or criticisms in India (Adedeji et al. 2017).
The dimension of power distance developed by Hofstede reveals employees exhibiting high power distance cultural aspects have greater propensity to observe participative management with apprehension, mistrust and disregard because of unpredictability of engagement with national culture (Adedeji et al. 2017). However, it has been observed that participative management can be implemented effectively in UK organizational culture but not with Japan. As the latter country reveal greater level of authoritarian management performance in comparison to the United Kingdom. The second dimension of Hofstede’s cultural insights reveals that supervisors or managers with high uncertainty avoidance prefer to consider organizations as an authority structure (Al-Sarayrah et al. 2016). Furthermore, organizations executing their business operations in societies revealing high level on uncertainty avoidance tend to depend on distinct procedures and regulations in order to condense level of uncertainty among employees. It has been observed that organizations operating in France promote hierarchical and governing rules in comparison to UK firms, however assimilating or regulatory mechanisms reveal higher efficacy in France in comparison to UK organizations. Hofstede in his third dimension ‘Individualism and Collectivism’ state that nations embracing high individualism have a propensity to have greater degree of sustainability for Protestant work ethic along with elevated individual inventiveness and promotions depending on market prominence (Armstrong and Taylor 2014). However on the other hand, Al Ariss and Sidani (2016) discussed that nations scoring low individualism tend to have reduced degree of individual inventiveness as well as promotion that is based on precedence (Armstrong and Taylor 2014). Hofstede by proficiently analysing cultural dimensions of UK, and China had exposed that individual centric knowledge development result to enhanced level of self-efficacy as well as improved performance for UK managers whereas collective training or induction typically results to higher level of self-effectiveness and elevated performance for Chinese decision makers in organizations (Alvesson and Sveningsson 2015). Inclusive understanding of masculinity and femininity in Hofstede’s fourth dimension expose that women belonging to feminine societal setting have a propensity to acknowledge enhanced quality of work setting with fewer working durations which would effectively facilitate enhanced work life balance. Studies based on performance contingent rewards and recognition in the United Kingdom is analytical of the effectiveness of congruence between management practices along with a masculine national cultural understanding. It is highly evident to recognize that performance contingent based rewards being properly distributed generate greater performance level in UK organizational business contexts. Supervision by objective serves as other vital management techniques that correspond to masculine cultural dimensions in comparison to feminine cultures (Tung 2016). Hofstede’s long term versus short-term orientation individuals achieving highest score on long-term orientation such as China and Hong Kong expose that organizations tend to exist in order to improve level of employee wellbeing. On the contrary, aim of UK organizations is to maximise the revenue of their stakeholders (Deephouse, Newburry and Soleimani 2016).
Impact of National Cultural Aspects on HRM Practices
Organizational cultural aspects as well as environmental determinants which constitute the existence of organization essentially determine the process of managing the organization. The association between organizational culture and human resource practices can be construed from the critical interplay of human behaviour in organizations while establishing organizational values or cultures (Luthans and Doh 2018). However, it has been noted that attaining insights of organizational culture and further incorporating them facilitates members to choose approaches and conduct which would integrate with both their personality and organizational performances (Brewster et al. 2016). These aspects however establishes a ground for the materialization of organizational centric human resource practices strengthening the truth that human resource practices does not exhibit any universality. However, (Al-Sarayrah et al. (2016) state that effective equivalence between national culture and human resource practices raises affirmative correlation between organizational growth and performance. Furthermore, studies reveal that organization demonstrates improved level of performances with congruency between national culture and human resource activities (Armstrong and Taylor 2014).
At the organizational level where conscious performance tend to approve human resource policies which are in compliance with ideologies and directions of a nation, performance of those organizations based on sales growth and revenues are higher (Luthans and Doh 2018). This enhanced performance may further show indications in increased and developed incentives structures for employees. Deephouse, Newburry and Soleimani (2016) were of the perspective that organizations showing incompetence in aligning essential tenets shared by employees often result to higher level of discontentment, lack of engagement and distress among the employee base (Tung 2016). While on the other hand, Al-Sarayrah et al. (2016) properly aligned HR practices with values and ideologies shared by employees reveal elevated level of organizational efficacy and positive influences. Furthermore, integrating individuals from diverse backgrounds working in amalgamation develops intricacies in certain parts of the world, thus elevating the level of concern of IHRM experts (Armstrong and Taylor 2014).
Multinational organizations often develop certain contexts which exhibit the need of new and improved policies. A section of these policies and regulations primarily incorporates certain level of challenges and risks whereby organizations determine the prolongation of such endeavours (Adedeji et al. 2017). Organizations which engage managers or supervisors belonging to low uncertainty avoidance orientation tend to deal with situations involving risks. However, on the contrary Brewster, Chung and Sparrow (2016) reveal that managers with high degree of uncertainty avoidance orientation acknowledge evading potential loss thus tends to prevent any forms of risks and organizational threats. Leaders deriving cultural insights from extensive power distance show a likelihood of being highly authoritative which leads to multifaceted issues and challenges, when these types of leaders confront or negotiate subordinates embracing low degree of power distance cultures, they prospect to position themselves to similar hierarchy as their subordinates (Stone and Deadrick 2015). Studies revealed by Samaha, Beck and Palmatier (2014) note that globalized business organizations are left with no alternative option than to embrace developing dynamic transitions, if they show relevance to the rapidly progressing corporate domain. Thus authors have emphasized on the fact that globalized organizations at specific contexts might have to undergo transitions. However the degree of reception or approval of these emerging developments relies greatly on orientation of members engaged in the organization (Samaha, Beck and Palmatier 2014). Thus, employees of the organizations revealing long-term orientation exhibit greater degree of inclination to adapt new situations whereas the ones possessing short-term orientation prefer to retain current cultural patterns in order to successfully resist any transition efforts (Adedeji et al. 2017).
As globalization prolongs, aspects of IHRM also increases its value and prominence. To conclude it is essential to state that factors related to globalization will be successfully attained if managers or decision makers of organizations possess a distinct perspective of cultural divergences. The elevating rate of internationalization as well as globalization of business have enhanced its relevance by emphasizing on the needs to understand ways to effectively establish HRM practices and procedures which can contest to extensive cultural as well as national disparities. The essay has provided an explicit understanding of the significance of managing globalized human resources which facilitates organizations to compete in a more efficient manner and rise as a developmental tool for the employees. Thus, effectual regulation of resources within globalized business organizations play a major determinant role of success or failure in global business.
References
Adedeji, B.S., Popoola, O.M.J. and San Ong, T., 2017. National Culture and Sustainability Disclosure Practices: A Literature Review. Indian-Pacific Journal of Accounting and Finance, 1(1), pp.26-50.
Al Ariss, A. and Sidani, Y., 2016. Comparative international human resource management: Future research directions. Human Resource Management Review, 26(4), pp.352-358.
Al-Sarayrah, S., Obeidat, B.Y., Al-Salti, Z. and Kattoua, T., 2016. The effect of culture on strategic human resource management practices: A theoretical perspective. International Journal of Business Management and Economic Research, 7(4), pp.704-716.
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledg
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Deephouse, D.L., Newburry, W. and Soleimani, A., 2016. The effects of institutional development and national culture on cross-national differences in corporate reputation. Journal of World Business, 51(3), pp.463-473.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior. McGraw-Hill.
Samaha, S.A., Beck, J.T. and Palmatier, R.W., 2014. The role of culture in international relationship marketing. Journal of Marketing, 78(5), pp.78-98.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), pp.139-145.
Tung, R.L., 2016. New perspectives on human resource management in a global context. Journal of World Business, 51(1), pp.142-152.
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