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European Social Model (ESM) is a set of principles and values geared towards solidarity, social justice, gender equality, and equal access to employment for all. It is the vision of the Europeans to combine sustainable economic growth with better living and working conditions. In their view, this is only possible if every country can protect its citizens against economic and social risks of life and changes in society, thus empowering the old and the young to secure good quality jobs with equity in the opportunities available. In addition, ESM had in mind the inclusion of most of the citizens if not all in making decisions that affect them in the respective countries.
ESM has enabled better working conditions in Europe through social dialogues and collective bargaining. According to the Europe Industrial Relation dictionary, article eight of the Treaty of Functioning of the European Union (TFEU) has been the pillar that supports better working conditions. Its policies and activities take into account requirements linked to promotions to the highest levels of employment, a guarantee of adequate social protection, protection of human health, and encouraging the highest level of education (Europe Industrial Relation dictionary, 2011, p.1). Good Industrial relations exist at the national level, across other industries, and at the company level that allows companies to take social responsibility for their surroundings. To workers, collective bargaining means better salary and terms of employment with better living conditions. Statistics show that Europe has the highest percentage membership to trade unions at 24% compared to the US at 12 % and Japan at 18.5%. This means more involvement in workers in decisions that concern them and better working conditions.
The European Social Model is a success. First, more and more employees joining trade unions show that they are happy about the collective bargaining, which has to date enabled better working conditions. Secondly, although Europe has a lesser GPD than the US, it is able to provide better healthcare and education to its citizen, which 40% of the US citizens lack. According to European Trade Union Confederation (ETUC), the ESM has outmatched the US Model, which allows only a small number of individuals to benefit at the expense of the majority (ETUC, 2005, p.1). Therefore, Europe should continue with the ESM to be an example to other countries of the world.
Institutional and Cultural Systems in the US versus Japan
It is undeniable that the institutional and cultural orientation of a given country greatly determines the perspectives of human resource management. This explains why human resource management in different countries approach their mandate differently (Indiana University of Pennsylvania web). The US is one of the major countries dominated by whites since time immemorial, institutional and cultural systems are largely based within the constructs of whiteness. Although there are many institutional and cultural factors affecting HRM operations in the US, white supremacy is the most predominant. White culture in the US means that most HRM operations have to satisfy the white culture (Pudelko, 2006, p. 123-126). For instance, HRM will consider factors such as racial factors, white ego, white social constructs, power, privileges, and dominance that are mostly associated with the American whites. This is quite different from other countries such as Japan where other institutional and cultural values are valued. Japan's institutional and cultural system is largely based on traditionally emphasized collectivism. Japanese culture system shares the values, which have been passed on as tradition throughout its history. These historical constructs greatly influence the institutional values since they are bound by traditions, most of which uphold collectivism (Pudelko, 2006, p. 126-138). As such, the HRM operations seek to organize the human resource such that collective gain is achieved whilst individual contribution is appreciated at the same time. This has been one of the strongest drives towards the Keiretsu form of business operation in Japan.
The two countries have different institutional and cultural systems. Whereas supremacy, prowess, and individual contribution are highly appreciated and focussed on in the US, Japan has more of a collective approach to HRM operations. HRM in the US is likely to be driven by the ultimate output of the organization. This in turn influences the HRM to seek specific means of human resource management and motivation techniques. However, HRM in Japan is most likely to be driven by Japanese culture and traditions which implies that HRM in Japan has to uphold the Japanese traditions first and incorporate them in their operations (Indiana University of Pennsylvania web). The organizational structures in these two countries are also different. Whereas HRM in Japan may be collective and collaborative, the US is propelled by the white culture to be individualistic, authoritative, and masculine. However, the two institutional and cultural systems share some values the most notable one being self-expression and quality of life. Institutional and cultural systems in both countries respect the value of self-expression and the quality of life of its employees (Pudelko, 2006, p. 130-139). ...Download file to see next pages Read More