The Culture of an Organization And Human Resources - Term Paper Example

HOW NATIONAL AND CULTURAL CONTEXTS CAN INFLUENCE THE EFFECTIVENESS OF HUMAN RESOURCE PRACTICES. Student’s Name Course Registration Date Introduction The culture of an organization and its environmental influences of operation are the main factors that dictate the way the management of the organization takes place (Aycan, 2005). The relationship that connects the organizational culture and the human resources practices is quite evident and significant in the functionality of the organization itself. For example, in a scenario in the organization where the employees have a clear understanding with regards to the internal culture within the organization, then it is possible to conclude that they know the way things take place in there are off work (Aycan, 2005). Due to this, these employees can make choices about the strategies as well as behaviors that match with their respective personalities plus the critical routines that lead to the implementation of activities in the organization. In most of the occasions, the major determinants of the organization’s Human Resource Management policies are the international, national and the organizational constraints (Stahl and Björkman, 2006). Following this instance, the impacts that result from the limitations created by these aspects are indeed rising day by day in many organizations across the globalized society. A good example in respect to the same is the case of the value created by the emergence of the Multinational Corporations, MNCs. Likewise, with the case by which there is a current trend in the extensions of most business operations to cover regional, national and international scenes, the instance in this case creates also the case of the characterized heightened permeability, adaptability with Human Resource Management, HRM practices that in at the end account for the differences that lie in the various nations (Stahl and Björkman, 2006). Similarly, MNCs that compete in the global scene with regards to the market, in this case, creates the value or the need to give recognition to the admonition 'always follow what Romans do when staying with them'. With the inclusion of both institutional (hard) and cultural (soft) variations, MNCs in this perspective not only have the objective to seek for the knowledge concerned with the social setup within the foreign localities but at the same time must come up with such ways that will lead to overcoming the hindrance blocks related with it so that they realize success in their operations in these foreign markets altogether (Stahl and Björkman, 2006). On the same note, some studies show that MNCs always make attempts in the transfer of the current HRM policies concerning foreign subsidiaries. However, with the consideration of the relevant cultural differences, most of these methods do end up not being successful. That said being that national culture derives itself from the skeletal framework of a particular society; then it is the organizational approach that creates the instance of adaptability with regards to the local environment as well as the existing cultures. Overview of National and Cultural Contexts about Effectiveness of Human Resource Practices With regards to national culture, the instance may refer to the shared assumptions, norms, values, and beliefs exhibited in a society (Bello-Pintado, 2015). Similarly, about a system of values, national culture may also mean the collective programs in the mind of a human being that lead to the influence of his manifestation of his behaviors within his society, the environment or a group (Hansen and Lee, 2009). For this reason, national culture simply refers to the instance of defeating or overcoming the universal problems found in the society that in this case may be those of external adaptation or the case of internal integration (Hansen and Lee, 2009). In this case, national culture is more like a thread that create the instance of intertwining the nation's heart with in connection with the individual, community, and the organization itself. For instance, it is just but a thread that enhances the stitching of the cracked society into becoming unified element (Hansen and Lee, 2009). Since any nation's human and institutional foundations are the fruits that yield its cultural roots, national culture, in this case, has a value of the activities taking place in an organization concerning the HRM policies (Bello-Pintado, 2015). Indeed, it is the culture of a nation that influences it to shape that accrues from every thought, choice, action as well as the organization Conceptualizing National Culture The values created by very many categories of culture all over the world may appear to be diverse and in turn the operations taking place in most businesses do not have constraints on geographical coverage (Stone, Stone-Romero and Lukaszewski, 2007). In this regard, MNCs must agree with the diversity noted here plus its resulting implications in the area of the management. As much as the permeability of the global barriers needs acknowledgment, the instance of transferability of HRM practices starting from the original country up to subsidiary ones may indeed come with difficulties and in turn creating some implications on the corporations' cultural variations. The instance, in this case, becomes very much indispensable to the management of the MNCs (Stone, Stone-Romero and Lukaszewski, 2007). The noted differences in the values, norms and beliefs about national cultures may indeed fall in four dimensions. The dimensions noted here may have impacts on the organization’s HRM policies with regards to the style of leadership, the essence of the regulations and the instance with which compensation should have some linkage with the individual’s output or professionalism Cultural Dimension Taking into account the reflection of the admissibility of the social inequality, it is in fact what leads to the underpinning of the roles of Al societies. In this regard, cultural dimension gives the indication of the levels by which there is acceptance of the inequality in the distribution of power among the nations (Aycan, 2005). However, in societies with high power, the issue of inequality has a wide acceptance thus leading to the emergence of the autocratic types of management while in low societies have the desire to enjoy the equality in power, good interpersonal relationships added with heightened involvement among employees. Power Distance Power distance defines the manner in which the distribution of power occurs and also the degree in which powerless admit the instance of the unequal distribution of power (Hansen, and Lee, 2009). For instance, some people in other cultures do accept higher instances of unequal distribution of power compared to some people in other cultures (Aycan, 2005). On the other hand, based on Hofstadter’s definition, power distance is that aspect that measures the levels by the powerless persons agree to such instances of unequal distribution of power (O'Sullivan, Smith, and Esposito, 2012). The instance in this case constitutes the cases of inequality defined from lower ends while not those from above. In this regard, it gives the suggestion that the level of inequality in a society always gets it endorsement from both followers and leaders altogether. Uncertainty and Avoidance There is a wide acceptance of the reflection of the extents of uncertainty and unpredictability in the society (O'Sullivan, Smith, and Esposito, 2012). For instance, societies that have high incidences of uncertainty avoidance always give priority to matters relating to long-term security to them. However, those societies that exhibit low cases of uncertainty avoidance should have the courage to focus on the unpredictability and risk taking chances. In this regard, the value of regulatory procedures reduces or become of no meaning at all. Individualism vs. Collectivism In this instance, it relies on the reflection of the identity degree that also depends on an individual or characteristics of a group (Hansen, and Lee, 2009). As much as in the individual societies, individual responsibility, initiatives as well as concerns may predominate; in the collective societies on their part have the characteristics of loyalty and concerns with regards to the wider area of social coverage. Following this instance, most of these societies rely on the organizational community plus the country as well. One of the notable comparisons of the instance of dominating HRM literature is that which concerns with the individualistic Anglo-Saxon countries and the collectivist Asian countries. In the early times of the 1960s, the whole of the Eastern section of Asia was undergoing the fastest rates of economic development in comparison to other sections of the continent or the word in general (Bello-Pintado, 2015). Due to the rapid development, the case of MNC from Anglo-Saxon countries such as the USA came up with the cooperative development operations in conjunction with other countries such as Japan, China, and Taiwan. In spite of this, the development of the desirable HRM practices through the respective foreign partners indeed faced a lot of resistance due to cultural differences (Bello-Pintado, 2015). Similarly, values, norms and beliefs within the Asian nations rely mostly on the traditions and the notion that workplace is a family issue (Bello-Pintado, 2015). Due to this, most of these countries are more of collectivist culture with the characterization of the high power distance coupled with high incidences of avoidance. On the same note, from the HRM policies developed by the USA that are much markedly different, the instance, in this case, leads to the ineffectiveness that results due to lack of contextualization. Masculinity vs. Femininity Masculinity vs. Femininity is that area that covers on the reflection on the value of the social variations that exist in many genders in the society plus the extent to which the traditional male orientations gets attention in comparison to the female counterparts (Kelliher and Anderson, 2008). In societies that are more masculine in nature often have the characteristics of the ambition-driven to realize success through the ownership of wealth. However, in the feminine societies, there is the aspect of the interpersonal harmony being its core likewise to the quality of life with regards to the environmental concerns and the emotional satisfaction that is available on such occasions (Littrell, 2005). For this reason, the relationship between culture and management practices is indeed critical in many ways to an organization. For example, it shows the cultural awareness as the policies of intertwining about inbuilt behavioral patterns and also the instances that share relationship heightened cases of performances. Though institutionalist presents their argument, those institutional systems such as the macro economy, governance and legislation from the major determinants of HRM policy differences; other studies on the effect of national culture in Asian countries with regards to HRM policies have a contradictory opinion (O'Sullivan, Smith and Esposito, 2012). For instance, the contradictory opinion states that though management practices may be under the influence of culture independent of institutional factors, HRM practices are still under the influence of those instances associated with culture. Implications for HRM at the National Context Indeed, national culture is that an aspect that depends on the skeletal framework of a society through HRM either in historical and social contexts of embedment and as wells as the field of management that is mostly prone to the effects of cultural variations (Bebenroth and Kanai, 2011). Following this instance, national culture has its influences on various facets of the corporation’s HRM policies such as resource administration, performance appraisal, strategic decision-making, leadership style, provision of developmental opportunities, and the management of employee relations (Brookes, Croucher, Fenton-O'Creevy and Gooderham, 2011). In this regard, HRM policies and practices from any particular nation are indeed the cultural artifacts where, in this case, are the reflections that cover on the norms and values defined by the culture in place where the organization operates. On the other hand, there are some studies that show that many MNC opted for the transfer of the existing policies in the country of origin to the host countries (Wang, 2010). However, the unavailability of the instance of contextualization gives the reason for the limited acknowledgments. For instance, a single size suits all as the present has no relevancy and so the aspect of contextualization with regards to management practices remains such critical for consideration. Elsewhere, the level in which MNC gives the differences as concerned with the HRM policy with the objective of fitting in the context of its affiliates remains directly associated with the case of the heightened performance of the firm as a whole (Stahl and Björkman, 2006). On top of this, the HRM policies appear to concur with the existing culture of a country as present form part of the heightened employee motivation, self - efficacy and improved organizational performance (Joseph Martocchio, 2009). For this reason, the case of the admonition ‘when staying with Romans follows their way of life’ may find its application in instances where the international HRM practices are fit for it. Since the association that relates the external environment and the internal strategies is significant, in this regard, the misconception that links national culture and HRM policies will lead sharp differences in the foundations of an organization (Stone, Stone-Romero. and Lukaszewski, 2007). For example, even in the case of what may appear to be more insignificant as regards to the crevice will cause the ineffectiveness in the operation of the business. For this reason, with the objective of the MNC determination to be competitive in the global scene, it becomes essential for them to have the recognition of these relationships and in turn do adjustments on the compensation practices that concern with the cultural attitudes present in the host nation. Multinational Corporations and HRM policy HRM policy is that aspect of general philosophy adopted by MNC through their respective subsidiaries. For this reason, the instance must take care of the tension that exists in the dual imperatives concerned with the global integration and local representation (Bello-Pintado, 2015). In another study, the three generic HRM policy orientations may find themselves adopted by MNC through their foreign-based partners. The instance here is the Adaptive, Exporting and Integrative aspect that relies mostly on the international scene of corporative evolution (Joseph Martocchio, 2009). Following this topology that shares some linkage with the MNC management practices taking place overseas may at times provide the mirage of the mother company and also provide the resemblance about the local practices or even seek to know more on the idle ground concerned with integration and differentiation (Rowley and Warner, 2013). As much as the theory based on early convergences present their argument concerning the adoption of an export strategy concerned with the availability of the universal truths, the fact is that the differences that are there between national cultures of the present society are very deeply rooted and, in this case, making the adaptation to local practices being of great value (Rothwell, Prescott, Lindholm, Yarrish, Zaballero and Benscoter, 2012). For this reason, it remains to argue that within the context of the increasing trends in globalization, the reality is that the readily transferable idea as of best practice has no relevance or adaptability or even instances of Integrative HRM cases of strategy orientations in where there may find the application. In this regard, the main issue for MNC does not specifically refer to the determination of the most effective HRM policy but to come up with the most suitable fit for the firm's external environment or in short the overall strategy as well as the HRM policy. Indeed, the international strategy is another determinant of the HRM policy that many MNC adopt through enhancing the multi-domestic or global coverage. Likewise the resulting distinction in a firm’s strategy that seeks to pursue the case of the differential fit and that which seeks for the universal adoption of the shared values (Lawler, Boudreau, Mohrman, Mark, Neilson and Osganian, 2006). For instance, a multi-domestic strategy or the decentralization is mostly undertaken by many countries in circumstances where the local market has high demands on the MNCs policy for adaptation. Despite that the aspect of multiculturalism remains the key argument with regards to the aspect of differentiation; the same instance still finds it augmentation in the urge to follow national legislation, rules plus instances of labor market institutions or the local isomorphic factors (Joseph Martocchio, 2009). Inconsequential with the theory of contingency, most of such kind of strategies needs the aspect of policy differentiation with the objective of fitting in the national environments defined by every subsidiary (Ortiz and Fernández, 2005). On the same note, MNC with global strategies or in other words centralization in plans may opt for the shared sets of values and goals with the objective of achieving the common or group competitive advantages. Based on such types of strategies, in this case, they rely on the heightened degrees of integration, centralization, coordination and control within MNC as the respective foreign partners (Phinney, 2010). As already noted earlier, the aspect of global strategy aims to reduce the elements of abyss derived from the variations that exist in the national systems and, as a result, giving more emphasis to the value of policy integration as well as mutual interdependence with the organization's levels. Most MNCs that opt for multi-domestic strategy have those characteristics of heightened independence and localization and in turn making them opt for the adaptive case of HRM orientation (Joseph Martocchio, 2009). On the other hand, that particular MNC that aims in the pursuance of the global strategy does incorporate the aspect of the integrative approach to its HRM policy as it is, in this case, the most viable option for them. For instance, those corporations that target the instance of the global strategy need top levels of integration including internal levels of consistencies in the MNC and its respective foreign affiliates. However, in another opinion, MNCs that are in competition in an ever increasingly marketing with high levels of globalization need not only the aspect of international integration but also the local attention despite the trends witnessed that lead to the internal convergence, discrepancies that exist in the national cultures with the urge for differentiation (O'Sullivan, Smith and Esposito, 2012). As much as the aspect of the international trade e and finance may create pressure on firms to enhance the standardization of the management policies, the fact remains that local customs, as well as culture, are part of the embedment in the aspect of the nation's act that in this case are the barriers to convergence or geocentric (Lindholm, Rothwell, Yarrish and Zaballero, 2012). On the other hand, MNCs' performances that come as a result of the adoption of the integrative policy of orientation or the higher levels of differentiated fit coupled with shared values indeed was much higher compared to other firms based on the sixty-six MNCs in more than nineteen countries. The facts here concur with the notion that MNC always has a pursuance for the geocentric approach with higher rates of sales, profit margins and also better market shares (Leonard and Gonzalez-Perez, 2013). Not forgetting, most scholars acknowledge that integrative policy is indeed more appropriate. However, only a few firms opt for the practice instead of that case of the exporting HRM orientation (Merlot, 2010). On the same note, despite the wholesale case of transplant within the HRM system being able to heighten the instance of integration among many units of MNC and again enhance continuity of the firm's ethos, the instance, however, fails to recognize both cultural and institutional hindrance blocks found within the societies. Conclusion Multinational Corporations have of problems about the balance of dual roles. The roles entail the cogs in the wheels of the current organizations and instance of the competitors available in the local markets. Due to the increasing cases of globalization, internalization of business, as well as heightened competition through the consideration of the viability of HRM policies available in various national contexts, is gaining a lot of values. Following this instance, the aspect of national culture finds its engraftment into the skeletal framework of a society and, in this case, being significant with regards to the operations of business alongside MNC and their respective affiliates. The instance, in this case, is with specific reference to the soft characteristics of an organization such as the HRM policies, practices, and philosophies. Though this paper presents more on the highlights with regards to the global convergence concerning the MNC policies and their respective foreign affiliates, the variations that exist in the national cultures and norms, beliefs and values intertwined with their roots, call for differentiation. Based on this regard, there is need to bridge the concepts concerned with integration and differentiation with the objective of providing justifications for the adoption of the aspect of the Integrative HRM policy orientation. The instance, however, takes place in the midst of both the multi-domestic and global strategies of management. For this reason, for the MNC to realize it a success, they should consider adapting with the HRM policies with the objective of giving the account for the cultural diversity while at the same ensuring the maintenance of the wider sets of practices that provides for the reflection of the firm itself. References Aycan, Z. (2005). The interplay between cultural and institutional/structural contingencies in human resource management practices. The International Journal of Human Resource Management, 16(7), pp.1083-1119. Bebenroth, R. and Kanai, T. (2011). Challenges of Human Resource Management in Japan. Abingdon, Oxon: Routledge. Bello-Pintado, A. (2015). Bundles of HRM practices and performance: empirical evidence from a Latin American context. Human Resource Management Journal, 25(3), pp.311- 330. Brookes, M., Croucher, R., Fenton-O'Creevy, M. and Gooderham, P. (2011). 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