Name of student: Topic: Lecturer: Date of Presentation: Introduction Human resource management as a field has evolved over a long period of time and with increased globalisation, issues outside the country gained importance resulting in emergence of international human resource management (IHRM)…
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Countries now have to deal with cultural, economic, political, legal and regulatory issues within and outside the country, that is, areas they wish to enter as new markets in making decisions. That means that human resource management has become a very complex activity for managers. This paper is aimed at comparing and contrasting the major cultural and institutional features and predominant HR policies and practices in UK and Germany. To achieve this, the paper will be divided into various sections. The first section will be comparison of ideologies such as neo-liberalism which is predominant in UK and neo-corporatism predominant in Germany. The next section will discuss various cultural theories such as Hofstede’s and Trompenaars perspectives and their effect on HR policies and practices as well as institutional policies such as EU and home/ host country regulations. The question to be answered is; is HRM becoming more similar or different across countries? The last segment will be conclusion. Ideologies Different economic systems of the world are ordered based on their ideologies. These ideologies according to Hollinshead (2009) present a general plan of action for structuring economic and social order and also as a guide to macro-level reforms. These ideologies include: neo-liberalism and neo-corporatism. Neo-liberalism is an ideology dominant in liberal market economies (LME) such as USA and UK. It is based on free market principles of a capitalist system that emphasise on market forces being left to allocate resources efficiently (Hyman, 2004). Actors in this system focus on fulfilling their own interests’ thus producers’ aim at maximising profit and owners of factors of production such as labour, land, capital are concerned with wages, rent, and interest. Government intervention in this type of system is undesirable hence the management has freedom to make decisions. Deregulation is thus a dominant feature. The system is also characterised by privatisation of enterprises, control of organised labour and removal of controls of global financial flows. As such, there is free movement of capital and labour within and outside the country. This is also enhanced by trade liberalisation whereby barriers such as tariffs are eliminated opening the doors of the country to the world. This trade is regulated through institutions such as World Trade organisation (WTO) and European Union (EU). Such a system is also characterised by reduced spending by government on social welfare spending and tax cuts. This is because such nations are concerned with short term investments and employees are considered as liabilities not assets (Hyman, 2004). This explains the difference between HRM policies and practices within and between countries. The neo-liberal ideal is not accommodative to things that would impede the free flow of market forces such as government intervention. All actors must be free to pursue their own interests; for example, labourers are free to work for any company as long as it satisfies their desires or the wage is competitive and in line with the labour market. For this reason, countries like UK are not appreciative of collectivist groups such as trade unions, work councils and worker representatives (Edwards et al. 2005).
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(“International Human Resource Management: (cultural and institutional Essay”, n.d.)
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International Human Resource Management: (cultural and Institutional Essay. https://studentshare.org/management/1469944-international-human-resource-management-cultural.
“International Human Resource Management: (cultural and Institutional Essay”, n.d. https://studentshare.org/management/1469944-international-human-resource-management-cultural.
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