Culture in HRM

8/8/2019 Culture in HRM

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Ing. Alexandra PappovDepartment of international business, 4a21

[email protected]


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y Culture components and levels

y National context how does it influence the HRMy Recruitmenty Selectiony Training and developmenty Performance appraisaly Compensationy Labor relation


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y Pervasive and shared beliefs, norms and values thatguide everyday life

y Solutions for problems, of adaptation; how children are

educated, whom to marry; how to dress ; what to eaty passed on to future group members through rituals,stories and symbols (that communicate the norms, values and beliefs of society or a group)

y Rituals formal ceremonies (baptism, graduation)y Stories nursery rhymes, proverbs, traditional legendsy Symb ols may be physical (flag) or holy artefacts. In IB

office size and location


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y Culture norms prescribe and proscribe behaviors(should and cannot do)

y Cultural values what is good, beautiful, holy y Cultural beliefs understanding what is true (science

vs. Religion)

y F ront stage of the culture easily observable aspectof culture

y B ack stage of the culture unterstood only by itsmembers or insiders


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y 3 levels of culture that may influence multinationaloperation national culture, business culture,occupation and organizational culture

y N ational culture the dominant culture within thepolitical boundaries of the nation-state (more thanone major culture within boundaries)

y

Subcultures regional and rural/urban culturey Major social institutions (beliefs, education, family,

politics, law, economics)are closely intertwined withnational culture


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y B usiness s culture - norms, values, beliefs thatpertain to all aspects of doing business in a culture

y The correct, acceptable way to conduct business in a

society y The priorities given to seniority, womens role, howsuperiors should behave etc.

y How the employees are being selected, promoted; howthe subordinates are led and motivated; organizationalstructure


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y O ccupational distinct cultures of occupationalgroups such as physicians, lawyers, accountants andcraftspeople

y

Norms, values, beliefs and expected ways of behavingfor people in the same occupational groupy O rganizational culture the norms, values and

beliefs concerning the organization shared by

members of the organization


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H RM in the local context


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y N ational context - national culture and socialinstitutions that influence how managers makedecisions regarding the strategies of their organization

y

National culturey Available labor other natural resourcesy Characteristics of political and legal institutionsy National and business culturey Factor conditions (resource pool)

and their combined effect on business environment


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Exhibit 11.1: How the National Context Leads toNational Differences in Local HRM Practices


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y All the human and physical resources available in acountry

y RP is influenced by:y The quality, quantity and accessability of raw materialy The quality, quantity and cost of personnel availabley The scientific, technical and market-related knowledge

available to firmsy

The cost and amount of capital available to firms foroperations and expansiony The type, quality and costs of supporting institution

(communication, education and transportation)


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y Natural factor conditions: national resources thatoccur naturally

y E.g., abundant water supply y

Induced-factor conditions: national resources createdby a nationy E.g., superior educational system


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y Recruitmenty Selectiony Training and developmenty Performance appraisaly Compensationy Labor relation


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y W alk-insy Newspaper or Internet advertisementy Company W eb site job postingy Internal job postingsy Public and private personnel agenciesy Placement services of educational institutionsy Current employee recommendations


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y U.S. managers tend to see newspapers as one of themost effective recruitment methods.

y Fear that recruitment by personal contacts may resultin bias against some groups.

y U.S. value open and public advertisements as areflection of individualistic culture.

y Collectivism Responsibility, achievment and rewardsare group-based

y Individualistism to be independent; individualresponsibility for succes or failure


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y Backdoor recruitment: prospective employees arefriends or relatives of those already employed

y Managers are recruited from prestigious universities


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y Job qualificationsy Match skills and job requirementsy Individual achievementsy Prohibitions against nepotism the hiring of relativesy Forbidding managers to supervise family members


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y Based on the in-groupy Preference for family y Value potential trustworthiness, reliability, and loyalty

over performance-related backgroundy High school and university ties substitute for family

membership


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y Managers must follow local norms to get best workersy Often a tradeoff between home practices and costs of

following local traditions


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y Need for training and development varies by country y Differences in training and development due to

y Differences in educational systemsy

Values regarding educational credentialsy Government requirements towards employees

trainingsy Life time employmenty C

ultural values regarding other personnel practices


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y Companies with over 100 employees invest more than$60 billion in training costs.

y Management development and computer skills are the

most popular.y There is growing pressure for training as the U.S. shifts

to the service sectors (technical skills, critical thinking,team building skills and learning abilities on the job).


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y Two major forms of vocational educationy General and specialized vocational schools and

professional and technical collegesy Dual system: combination of in-house apprenticeshiptraining with part-time vocational-school training, and

leads to a skilled certificatey collaboration among employers, unions, and the statey

Costs shared between companies (2/ 3) and statey Employers have obligation to release employees for

training


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y Senior level managers often identify managerialpotential

y Appraisals of managerial readiness based ony

Assessment centersy Mentoringy Fast track careers

y Remains the responsibility of the individual


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y Permanent employment ( Confucian values)y Recruitment directly from universitiesy Join the company as a groupy

Selected on personal qualities that fit the corporateculture (hope to make long-term employment)y Similar pay and promotion for first ten years age

seniority y Aging more expensive managerial workforce


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y Identifying people to reward, promote, demote,develop and improve, retain, or fire

y Not everyone can climb the corporate laddery Need to assess how employees perform


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y U.S. legal requirements regulate performanceevaluation practices to ensure their fairness

y Performance appraisal system containsy

performance standards (goals, q/q of output),y performance measures,y feedback (interview; tell-and sell, tell-and-listen,

problem-solving )y and HR decisions related to remuneration, promotion

or termination.y Performance evaluations must relate clearly to the job

and performance


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y Performance standards must be provided in writingy Supervisors must be able to measure the behaviors

they ratey Supervisors must be trained to use evaluationmeasuresy Supervisors and subordinates must discuss appraisals

openly y Appeals procedures must be in place


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y W ages and salaries, incentives such as bonuses, andbenefits such as retirement contributions

y W ide variations on how to compensate workers


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y W ages and salaries differ based on two major factorsy External: include local and national wage rates,

government legislation, and collective bargainingy Internal: include the importance of the job to the

organization, its ability to pay, and the employee srelative worth to the business


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y Traditional approachy Base salaries on positionsy Skill and educational requirementsy

Agey Marital status and family size may county Bonus system: employees often receive up to 30% of

their base salary during traditional gift-giving seasons


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y Can affect pay raises to a greater degree thantraditional position/seniority system

y Nenpo system: based on yearly performance

evaluations that emphasize goalsy Although goals are not always the same as in W esterncompanies

y Stresses attitudes as much as performance


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y Define culture and understand basic components of culture

y Understanding how the national context affects HRMpracticesy Identify how recruitment and selection practices differ

in various national contextsy Identify possible host adaptations in recruitment and

selection practices


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y Identify how training and development techniques areused in different countries

y Identify sources of high-quality workers in different

nationsy Understand how training must be adapted to host

country workersy Identify how performance evaluation and

compensation practices differ in various nationalcontexts


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Thank you for attention

Have a nice day!

Culture in HRM

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