Influence of Cultural Differences on HRM Practices - Essay Example

? Influence of Cultural Differences on HRM Practices Influence of Cultural Differences on HRM Practices Introduction In the past, organisations across the globe had arrived at the assumption that once an organisation was established a distinct culture would spring up within it. This was not the case until research was done extensively to prove that external environmental elements would significantly influence the organisations’ culture (Laungani, 2007). Cultural differences are a factor that had been overlooked among others as they were not regarded as a crucial variable in explicating organisational behaviour. The same extends to the human resource management practices as they were presumed free from external factors and constraints. Earlier research had revolved around one geographical area leaving many gaps in case an organisation went globally. This brought the need for extensive research, which indeed proved that cultural difference influenced human resource practices (Moran, Harris and Moran, 2011). Adapting an organisation’s customary ways of operation is crucial when setting up new institutions in different environments, as it enables the transfer of efficiency and rules into another geographical position. It is also vital to observe the cultural practices carried out in the new place of establishment. With the world increasingly moving towards being a global village, expansion of businesses across borders has been prioritised to ensure maximum profits. They have also realised that the human resource management practices have to be adapted in the cultural settings suitable to the relevant socio-cultural environments rather than imposing their own (Muratbekova-Touron, 2008). What are these cultural practices and how do they influence human resource management practices? Cultural practices are notions, values and premises in a society, established through conditioning throughout people’s lives and help to mark them out from others in a different society (Milikic, 2009). These notions and beliefs play a key role in an individual’s life; therefore, an organisation should be keen on ensuring that they are not overstepped. With the introduction of new members in a group, a culture may undergo some alterations, but some invisible and unconscious components that lie within may not change. Cultural practices differ from one society to another as human resource management practices differ from one organisation to the other (Muratbekova-Touron, 2008). Human resource management practices are described as the activities and decisions, which relate to the act of managing employees at all tiers in the business enterprise. They are also concerned with the elaborate execution of strategies and schemes aimed towards achieving and maintaining a competitive advantage (Stone and Romero, 2008). As a result, it is essential for organisations to formulate a culture that promotes of appropriate work practices. A few of the human resource management practices include, remuneration systems, recruitment exercises, staff-appraisal systems, and work flexibility arrangements among others (Milikic, 2009). Employees perceive human resource management practices differently due to the separate cultural values and identities. Some employees react differently towards certain practices and the degree to which they commit to their jobs and the organisation relies on the familiarity with the ongoing activities. The training and recruitment of people with diverse cultural interests, backgrounds and nationalities, would be a difficult task especially when looking into their cultural differences. However, studies have led to discovery of theories that enable easier analysis (Stone and Romero, 2008). Managers are likely to encounter cultural differences that might hinder effective management frequently, especially in this multicultural worldwide business environment. Studies indicate that successful comparisons between different cultures can be made by testing Hofstede’s set of cultural dimensions. They concern with collectivism versus individualism, power distance, uncertainty avoidance, and femininity versus masculinity (Hofstede, 2001).). Individualism versus Collectivism This depicts the link between an individual and the community found in a particular society. Individualistic societies have loose ties between individuals; therefore, everyone takes care of their own interest and that of their close family. Other societies have close links among individuals and people look after each other in their respective group (Hofstede, 2001). Power Distance This is the degree to which members with little power and influence in an organisations consent and expect unequal distribution of power. In societies where power is unequally distributed, satisfaction of the psychological requirements of people without power is needed (Hofstede, 2001). Uncertainty Avoidance The central concern about this is in the way that society handles the reality that time goes one way, exclusively. In some societies, members are taught to accept this uncertainty and not become disturbed by it; therefore, they tend to take risks easily, accept things as they come and not work hard. Other societies tend to train their members into attempting to better the future, as it appears unpredictable. Members are characterised by a high degree of anxiety and aggressiveness (Hofstede, 2001). Masculinity versus Femininity This pertains to the act of diving roles and activities between the two different sexes in the society. Masculine societies have social values that are inclined towards masculine way of thinking and diffuse the entire society including the women. Showing off achievements and making money are some of the values in masculine societies. Feminine societies are dominated by values considered being highly associated with the feminine roles. They include taking care of the environment, emphasising on the importance of relationships and helping others (Hofstede, 2001). A study indicated that the Chinese and United Kingdom companies had differences in human resource management practices where activities that involved relationships were culture sensitive, for example, reward systems, selection criteria, performance appraisal, and industrial relations (Milikic, 2009). Planning activities were not conceived as culture sensitive. Do cultural differences influence HRM practices? Some of Hofstede`s cultural dimensions used to show the influence of cultural differences on human resource management practices include job analysis, recruitment, selection, human resource planning and career management (Hofstede, 2001). Job Analysis This concerns the process of receiving elaborate data and information from employees about their jobs, activities and job description. It involves looking into the particular skills, knowledge, abilities and features that are essential to ensure proper execution of a chore (Milikic, 2009). Although limited research has been done in regards to the role of culture on job analysis evidence shows that three cultural dimensions by Hofstede affect job analysis. These are Uncertainty Avoidance, Power Distance and Individualism versus Collectivism. The three touch on the particularity of the job specification and description, way of conducting job analysis and the unit of analysis. As Uncertainty Avoidance increases, so does the role formalisation within the structure of an organisation and vice versa (Hofstede, 2001). Therefore, high Uncertainty Avoidance societies or cultures have detailed job specifications and descriptions, which are clearly illustrated and stable to avoid role equivocalness. In high Power Distance or weak Uncertainty Avoidance societies or cultures, job specifications and descriptions are not exceeding particular (Moran, Harris and Moran, 2011). Teamwork and excellent interpersonal relationships are expected from collectivistic societies or cultures while individual accountability is expected from individualistic cultures. In collectivistic cultures, individual accountabilities are hazy, and job descriptions are not prepared for individual workers (Milikic, 2009). Besides cultural differences, institutional differences also play a hand in the quality of job analysis. For developing countries, most of the jobs are aligned along collectivism while for the developed countries, they are aligned on individualism. The settings also influence job descriptions as rural areas regardless of developing or the developed countries have more of collectivism. Adjustments on the determinant of Uncertainty Avoidance on the level of formalization can be enhanced by Collectivism and Masculinity versus Femininity. This indicates that Collectivism, Power Distance and Femininity in together lead to a lower level of role formalization in high Uncertainty Avoidance societies. Collectivism and Femininity are essential in lowering the role ambiguities experienced in high Uncertainty Avoidance cultures (Milikic, 2009).. Human Resource Recruitment It is outlined as any activity or exercise that is conducted by an organisation with the chief intention of keying out and pulling in potential employees (Milikic, 2009). The aim is to draw in qualified nominees in a favourable number, which will grant an organisation the opportunity to choose the most beneficial ones to occupy the voids. Studies done have focused on two cultural dimensions, which are Power Distance and Collectivism versus Individualism. With regard to the method of recruitment employed, Collectivism enhances preferences in the direction of informal and internal recruitment processes and recruitment channels based on networking. These include networking events, job fairs and employee referrals, which appear more desirable than newspaper advertisements or recruiting online (Muratbekova-Touron, 2008). High Power Distant and Collectivistic countries tend to shun hard criteria such as skills, abilities and knowledge but emphasise on recruitment criteria such as socio-political links and assigned status. Countries with high Uncertainty Avoidance, large Power Distance and high Collectivism such as Serbia, are likely to design elaborate recruitment exercises (Milikic, 2009). With high Power distance and Collectivism, people are likely to be inclined along the internal recruitment. Consultants can be used when externally recruiting senior managers in order to reduce risks associated with external candidates. Selection This is process that follows recruitment where a consortium of eligible nominees is formulated, and selection of applicants follows. They are evaluated through a variety of ways with the goal of detecting the best candidate for the organisation (Milikic, 2009). In Collectivist cultures, selection based on test scores is not common while selection based on in-group member recommendations is quite common. Employers in the individualistic cultures employers are likely to choose candidates based on their abilities and skills. In North America, education, mental skills, experience and the personality traits are used when selecting employees. On the other hand, the selection criteria in collectivistic cultures concentrate on roles the individual will play in the team. Highly structured interviews do not feature in collectivistic cultures but certainly feature in individualistic cultures. Human Resource Planning and Career Management This is the procedure of predicting the supply of the different kinds of human resources’ of demand based on the expected course of an organisation. The process has a time frame and comprises of goal setting, forecasting, evaluation, implementation and strategic planning. On the other hand, career management is the assessment procedure through which the employees’ abilities and aspirations are evaluated. It also includes planning and guiding their personal development as opportunities avail themselves within the organisation. Hofstede`s cultural dimensions have limited influence on these human resource management practices as research conducted has had mixed reactions proving if they are culturally bound (Milikic, 2009). Conclusion The purpose of this essay was to show whether cultural differences have an influence on human resource management practices. Through the various studies from the few sources indicated in the essay, it is clear that many aspects of human resource management practices are influenced by cultural differences. The studies show that with different cultural aspects, there is the emergence of challenges, which are encountered along the human resource management practices. Apart from Human resource planning and career management, the paper leans towards supporting the fact that cultural differences have an influence on the human resource management practices. References Hofstede, G. (2001). Culture's consequences: comparing values, behaviours, institutions, and Organisations across nations. Thousand Oaks,Calif.: Sage. Laungani, P. (2007). Understanding cross-cultural psychology: Eastern and Western Perspectives. London: SAGE Publications. Milikic, B. (2009). ‘The Influence of Culture on Human Resource Management Processes and Practices: The Propositions for Serbia.’ Economic Annals, 181, 95-118. Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences global leadership strategies for cross-cultural business success. Burlington, MA: Butterworth-Heinemann. Muratbekova-Touron, M. (2008). From an ethnocentric to a geocentric approach To IHRM: The case of a French multinational company. Cross Cultural Management: An International Journal, 15(4), 335-352. Stone, D. L., & Romero, E. F. (2008). The influence of culture on human resource management Processes and practices. New York: Psych Press. Read More