Human Resource Management

humankind Resource Management1. IntroductionBy definition tender Resource Management (HRM) is the function within an makeup that focuses on recruitment of, solicitude of, and providing direction for the people who race in the organization (Hofstede,G 1984) Human Resource Management (HRM) can also be performed by store motorcoachs. As more than and more cooperation are becoming global in their operations people attention is becoming more complex and sophisticated. In this insure it is briefly discussed whether it is possible to manage people from different countries with the same policies and procedures across the guilelesss i.e. whether it is possible for a multi subject area fraternity to rich person ethnocentric approach and bland have global presence or should they adopt more geocentric approach to succeed in foreign markets. According to Porter (1980, 1985) HRM can sponsor a firm obtain competitive advantage and thither is a direct correlation between strategic HR M and economic successSince, the major (and developing) markets for spry phones and electronics are USA and europiuman countries, to be closer to these large markets a manufacturing plant should be established in either of the continents. It is very important for the phoners forethought to have agnize understanding of HRM practices of both the continents (societies) before they invest in new plant in either of the continents. Its clear from the studies in the past that for operational success in foreign land it is important for the care to deeply study the topical anaesthetic HRM practices. A few studies have investigated the effects of purification on use of HRM strategies (Gooderham et al., 1999 Tregaskis, 1997), finding that the HRM strategies used by companies may reflect the heathen values of the jitneys and employees ( Gooderham et al., 1999 Hofstede, 1991 cited in Fields,D., Chan, A. , Akhtar, S. and Blum, T.C. (2006 ). This report go forth interpret North Americ an as well as European culture for human resource practises and compare it with Asiatic HRM practices (where firm is currently based) , also it will throw some light on cultural values, recruitment and training, payments and rewards, motivation and date relations of North American (USA Canadian) and Europe Union companies.2. Culture The close to important factor to look for while globalising the operationsThe better and most comprehensive definition of culture so far has been given by anthropologist Kluckhohn in 1951, according to definitionCulture consists in patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive contactments of human meetings, including their embodiments in artefacts the essential inwardness of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values.Culture involves a set of cognitions that are shared by all or many members of a s ocial unit these cognitions are acquired through social learning and socialization processes, and they include values, common understandings, and patterns of beliefs and expectations (Rousseau, 1990). According to Hofstedes in his studies in 1984 it was found that there are main 5 dimensions to culture which are Power Distance, Individualism, Uncertainty Avoidance and Masculinity/Femininity.When dealing with people from diverse background senior managers bet the most important role in formative cultural values of the organization (Sharma,B. and Chew,K.H 2005). Employment practices play an important role in shaping the organizational culture and become the motivating factor for employees. To have successful implementation of HRM policies and practices above mentioned cultural dimensions shouldnt be ignored by HR manager especially when globalizing the operations.2.1 High and Low context CulturesHigh context culture refers to a cultures tendency to cater towards in-groups, an in-g roup being a group that has similar checks and expectations, from which inferences are drawn. In a amply context culture, many things are left unsaid, letting the culture explain. High context cultures are socialist in nature. (Hall, T.E 1976)Low Context culture has tendency to cater towards in-groups. Low context cultures, such as Germany or the United States make much slight extensive use of such similar experiences and expectations to communicate. Much more is explained through words or verbalization, instead of the context. Low context cultures are usually individualistic. (Hall, T.E 1976)In order to communicate successfully managers have to roll the cultural differences and have to alter communicating process according to individualistic or collectivistic cultures. It is best to explain theses differences in terms of low- and high-context communication. Context has to do with how much you have to know before you can communicate effectively. (Hall, T.E 1976)3. Types of Orga nizationIn 1991 kabanoff in his look developed a typology that describes four value profile types organizations can fall into Elite, Meritocratic, Leadership and collegiate. The value profile of an organization is heady by two factors the degree of equality versus inequality in their structures and the degree of equity versus egalitarianism in their processes.The Collegial profile describes an organization where cohesion is the superstar concern. Power, rewards and resources are evenly distributed it relies upon a commitment to shared values and individual responsibility for actions as the basis for task-achievement rather than upon more tangible rewards the organization exercises comparatively little control over peoples activities (e.g. professional bureaucracies). (Kabanoff, 1991). The Meritocratic profile describes an organization whose members are highly concerned with both cohesion and productivity. This type shares many of the integration-oriented qualities of the coll egial culture but with increased emphasis on death penalty and rewarding people for performance (Kabanoff, 1991).An international human resource manager should keep culture (of the country in which organization is based) and type of organization he acts for in mind while designing or forming the people trouble policies for the organization to have successful results.Few organizations foster high performance work bodys also known as high commitment or high contact practices or systems (Wood, 1999 cited in Zacharatos, A., Hershcovis, M.S., Turner, N., Barling, J. 2007).This type of organizations treat its employees as assets, managers in these types of organizations treat employees with fairness and with respect more importantly employees in such organizations become pop out of decision making process. Such organizations provide employees with job security, opportunities to upgrade their skills or pay employees comparatively better wages. (Wood, S., Wall, T., 2002)According to W ood, S. and Wall, T., (2002) all the organization with high performance work systems have following characteristicsa) Foster employee involvement in their work.b) Fosters employee involvement and commitment towards organizational goal.c) Opposite to Taylorist model in which control is favored, in high performance work systems instead individual and group autonomy is preferred.So far in this report we have discussed culture and its impact on work environment also, for clear understanding of the concept organizational types have been discussed. Now moving further this report will briefly discuss European and North-American work culture and compare it with Asian practices of human resource management. This knowledge will help management to understand what changes need to be made to current employment practices in order to successfully manage and motivate employees in western countries.4. Popular Models of HRM4.1 The European model of HRMIn his studies of HRM-economics success equation Beyer (1991) has said Human Resource Management is the only true important determinant of success. In the past most of the authors of HRM studies have focused on US and Japanese models of HRM practices as US is considered to be the birth place of management studies and Japanese model of organizational structure( including human resource practices) have been very successful in the past. really little has been written or said about European model of HRM .There are clear country differences which can be understood and explained in the context of each national culture and its manifestation in history, law, institutions and trade union and employing organization structures or in terms of regional clusters within Europe (Filella, 1991 as cited in Brewster, C 1993).In the words of Thurley, K. and Wirdenius, H. (1991)European Managementis emerging, and cannot be said to exist except in limited circumstances is broadly joined to the idea of European integration, which is continuously expa nding further into different countries (i.e. the 12) reflects key values such as pluralism, tolerance, etc., but is not consciously developed from these values is associated with a balanced stakeholder philosophy and the concept of Social Partners.4.1.1 Importance of Trade Unions in EuropeIn European countries the presence of unions are important the definition, meaning and reliableness of unions varies from country to country in European Union (Brewster, C.1993). European countries are heavily unionized as compared to US. Countries like France, Germany for example has legislation making necessary for firms over certain size and employee strength to consult trade unions in certain circumstances. (Brewster, C.1993). Few academicians argues that workforce in Europe as a continent is deeply influenced by trade unions for example Sweden has union membership of 85 per cent of working population, UK has 40 per cent and France has 12 per cent which is double of US (Gunnigle et al., 1993 c ited in Brewster, C.1993 ). The most important function of trade unions in European countries is to get a incorporated bargain for the employees on industrial or national level (Gunnigle et al., 1993 cited in Brewster, C.1993). By studying the European style of management it can be said that Trade Unions can be seen by management as Social Partners which has a positive role to play in human resource management. This type of view of trade unions is quite opposite to American style of management.4.2 The US model of HRMHR policy is defined by a set of principles, which aim to solve a set of problems and that materialize in a set of practices (Tome, E.,2005). The pioneering study in the field of scientific management which found its way in modern HRM was conducted by Taylor in US in 1964. Few of the important points from Taylors study are as followsHuman skills and organizational competences are essential to the maturation of any company.The skills pyramid has a slight top and large base.Knowledge is essentially holded by the small group at the top.The small top group members should be highly rewarded because they possess a very important asset knowledge. (Cited in Tome, E., 2005).These points have acted as base of US model of HRM since long time. According to Hofstede (2001) in his studies have shown that US culture is more individualistic and achievement-oriented as compared to any other country, Managers from US give more importance to knowledge as compared to anything else and employees do not tie in personally (moral connections) to the jobs like Japanese employees do.4.2.1 Anti- Unionism in USUS model of HRM is anti-union and anti-collective-bargaining. The contemporary approach of HRM ignores trade-unions and are being based on a unitary view of organizations (Strauss, 1968). Since the US society is high on individualistic characteristics so trade-unionism is not very popular in American society.According to research conducted by Marsh,R. and Pedler, M in 1979 on unionization in white soupcon jobs, eight factors were found that affect white collar unionization in US and UK ( See extension 1) (1) Company organisation structure(2) Occupational composition of the workforce(3) Managerial attitudes(4) Existence of staff associations(5) Employers Associations(6) Trade Union recruiting strategies and organisation(7) Professional Associations(8) Government Interventions4.3 Asian model of HRMManagers and workers from companies originated from Asian countries may tend to see a relationship with an organization as a moral connection, where the collective unit and worker have reciprocal obligations to each other. On the other hand, US managers may tend to view employment relationships as primarily scheming in nature (Hofstede, 2001 cited in Fields,D., Chan, A. , Akhtar, S. and Blum, T.C. ,2006 ). This difference may reflect the higher individualism in US culture, where conformity to an organization is seen negatively as misdemeanor in th e self-interest of the employee (Hofstede, 2001).Managers and worker in Asian countries for example China and Hong-Kong differ from the workers in US (North America) in big businessman distance i.e. a orientation is given to more formal interactions with superiors. More importance is given to collectivism in Asian societies as compared to individualism in western societies. These cultural differences may combine to establish differences in decision-making and models of employee-organization relationships that influence choices of strategies to counteract uncertainties in the supply of labor (Fields, D., Chan, A., Akhtar, S. and Blum, T.C. (2006).4.3.1 Performance assessmentIn Asian cultures workers may view performance monitoring and assessment positively. Increased performance monitoring can be perceived as a symbol that managers are taking a greater interest in the workers (Hofstede, 2001). Performance assessment is viewed by Asian workers as one of the ways by which they show t heir moral connections with the company. According to Redding and Wong, 1986 the retention of alive workers in Asian organizations may be increased by placing more emphasis on performance monitoring and assessmentOn the contrary, because of lower power distance in US culture increased performance monitoring is seen negatively. It is seen as managements way of emphasizing the differences between bosses and workers (Hofstede, 2001). In US and European countries this policy of constant and strict performance assessment/monitoring can temper to high attrition within the organization, also it may lead to workers seeking different jobs which could possibly lead to labor shortage in the organization.4.3.2 Training and RecruitmentIn collectivist culture like Asian cultures more emphasis is paid on training and development of existing employees as companies/organizations take it as their moral obligation to increase its employees skills (Hofstede, 2001 cited in Fields, D., Chan, A., Akhtar , S. and Blum, T.C. (2006). Also, Asian firms view training of employees as one of the way to reward them, these in-house trainings make employees feel that they are accepted and important part of collective unit. (Redding and Wong, 1986).In US and European culture where workers are more individualistic and self-interested in their pursuits companies see training as building technical and interpersonal skills of employees (Drost et al., 2002). Such employment practices are popular in US and Europe because of tight labor market and individualistic employees use newly acquired skills to find better position elsewhere.5 fin Key Factors for successful transfer of HR policies from HQ to subsidiary (See Appendix 2)5.1 International experience of local HR coachThe local HR director plays an important role while transferring HR policies. HR director needs to deal effectively with HQ staff, the foreign CEO and the colleagues from other countries. It is desirable that the local HR director have international experience from working and living abroad. (Diplomingenieur, W.S., 2004)5.2 International experience of HQ HR staffHQ staff needs to have the experience of the other side to be a valuable partner to the subsidiary. The necessary experience, in addition to subject expertise, includes cultural sensitivity and a keen sense for the daily business challenges in the subsidiaries. (Diplomingenieur, W.S., 2004)5.3 Practice manuals, clear guidanceCompany/firm should avoid generic policies and guidelines that need to be translated into practices to be justify to management in HQ. HR managers should rather have clear practice manuals and directives, with the freedom to deviate if appropriate. As a simple example consider a policy that says performance review is mandatory versus a manual that says in April each year every employee gets to speak face to face with his or her manager about past performance and expected future performance(Diplomingenieur, W.S., 2004)5.4 Establish feedback routes to HQ other than the CEOUsing the CEO as a feedback route to HQ for HR matters is a short term fix that prevents the long term solution of having a more versatile and internationally surgery HR, both in HQ and in the subsidiaries. (Diplomingenieur, W.S., 2004)5.5Organisation by region, not by issue (mentor)Cultural barriers are reduced and a more direct communication is possible if responsibilities in HQ are organised by region rather than issue. If every country has their HR generalist in HQ as a partner, there will not only be fewer misunderstandings but also the HQ tendencies to have very theoretical, or specific, policies will decrease. (Diplomingenieur, W.S., 2004) polishIt is not essential that managing people is same in all the countries but it hugely depends on the organizational culture and values. Pieper (1990) in his study of European management styles has concluded that a single universal model of HRM doesnt exist. High and low context culture plays an i mportant role in organizations success. An HR manager should keep typology of organization in mind while forming policies, procedures and processes for his firm as it is evident from empirical studies that companies fall under Elite, Meritocratic, Leadership and Collegial typologies and equality/inequality, power distance and individualism/collectivism in the organizational culture depends on typology of the organization.It can also be argued that a multinational company has to keep few values for e.g. The vision and mission of the organization uniform in each and every country of operation in order to achieve its short and long term goals. However, in its endeavor HR manager should not forget that people from different countries have different value system which makes International HRM a challenging task while globalizing the operations.RecommendationThe transfer of policies and procedures from the parent organization to subsidiary location is very important for the multinational o rganizations in order to globalize its the operations. The ability to transfer knowledge effectively across the border is identity of a successful MNE, while doing this management should keep cultural difference in mind, to formulate policies and processes that are not only motivating for employees but also helpful to management for smooth operations. Management should keep fin key factors mentioned above in mind to successfully transfer HRM policies to western countries. It is expected from local HR manager to adapt companies polices according to European or North-American style of HRM and translate into practice. Firm should encourage HR managers as well as employees to participate in cross-border cultural training. Recruit people with international experience or else some of the staff can be transferred from HQ in Asia to the subsidiary in Europe or North-America for short period of time. Create a company specific, regional, practice manual for HR. And lastly encourage at least one annual trip for the local HR director at Europe or America to HQ in Asia.ReferencesBeyer, H.T. (1991) Personalarbeit als integrierter Bestandteil der Unternehmensstrategie paper to the 1991 DGFP Annual Congress, Wiesbaden.Brewster, C 1993 Developing a European model of human resource managementDiplomingenieur,W.S.,(2004) the dissertation submitted in University of Southern Queensland, Australia , on Transfer of human resource policies and practices from German multinational companies to their subsidiaries in South East Asia P 165-169Drost, H., Frayne, C., Lowe, K., Geringer, J.M. (2002), Benchmarking training and development practices a multi-country comparative analysis, Human Resource Management, Vol. 41 No.1, pp.67-86.Fields,D., Chan, A. , Akhtar, S. and Blum, T.C. (2006), Human resource management under uncertainty.Gooderham, P., Nordhaug, O., Ringdal, K. (1999), Institutional and rational determinants of organizational practices human resource management in European firms , Administrative Science Quarterly, Vol. 44 pp.507-31.Hofstede, G. (1984), Cultural dimensions in management and planning, Asia Pacific Journal of Management, Vol. 1 No.2, pp.81-99.Hofstede, G. (1991), Cultures and Organizations Software of the Mind, McGraw-Hill, London, .Hofstede, G. (2001), Cultures Consequences, Second Edition canvas values, behaviors, institutions, and organizations across nations, Sage Publications, Thousand Oaks, CA, .Hall,T.E (1976) Beyond CulturesKabanoff, B. (1991), Equity, equality, power and conflict, Academy of Management Review, Vol. 16 pp.416-41.Kluckhohn, C. K. (1951). Values and Value Orientations in the Theory of ActionMarsh,R. and Pedler, M. (1979),Unionizing the white collar worker P 2-6Pieper, R. (1990), Human resource management An international comparision, BerlinPorter, M. (1980) Competitive Strategies, New York The Free PressPorter, M. (1985) Competitive Advantage, New York The Free PressRedding, G., Wong, G.Y.Y. (1986), Chinese organization al behaviour, in Bond, M.H. (Eds),The Psychology of the Chinese People, Oxford University Press, Hong Kong, .Rousseau, D.M. (1990), Assessing organizational culture the case for multiple methods, in Schneider, B. (Eds), Organizational Climate and Culture, Jossey Bass, San Francisco, CA,Strauss, G. (1968) Human relations 1968 Style , industrial relations, 7 262-76.Sharma,B. and Chew,K.H (2005) The effect of culture and HRM practices on firms performance.Taylor, F. (1964), Scientific Management, Harper Row, London, .Thurley, K. and Wirdenius, H. (1991) Will management become European Strategic choices for organisations , European Management Journal, 9, 2 127-34.Tome, E. (2005) Human resource policies compared What can the EU and the USA learn from each other? P 405-418Tregaskis, O. (1997), The role of national context and HR strategy in shaping training and development practice in French and U.K. organizations, Organizations Studies, Vol. 18 No.5, pp.839-56.Wood, S., Wall, T. (2002) , Human resource management and business performance, in Warr, P. (Eds),Psychology at Work, Penguin, London, pp.351-74.Zacharatos, A., Hershcovis, M.S., Turner, N., Barling, J. (2007 ) Human resource management in the North American automotive industry A meta-analytic review 231 254Appendix 1Source Marsh,R. and Pedler, M. (1979),Unionizing the white collar worker P 2-6Appendix 2Source Diplomingenieur,W.S.,(2004) the dissertation submitted in University of Southern Queensland, Australia , on Transfer of human resource policies and practices from German multinational companies to their subsidiaries in South East Asia P 165-169