Training and Development and Remuneration of Employees - Essay Example

Cultural Adaptation of IHRM Function Name Institution Date Table of Contents Cultural Adaptation of IHRM Function 1 Name 1 Institution 1 Date 1 Table of Contents 2 Cultural Adaptation of IHRM Function 3 Introduction 3 Training and Development 3 Recruitment and selection 6 Remuneration 7 Conclusion 10 References 11 Cultural Adaptation of IHRM Function Introduction The rapid change from predominantly homogenous and indigenous labour force to a culturally diverse workforce has brought opportunities and challenges for Japanese organizations. Multinational companies operating in several nations with different cultural orientations are faced with serious challenges of implementing human resource management practices that are acceptable by a culturally diverse workforce. Efficient implementation of human resource management practices highly depends on the level at which these practices are perceived appropriate by management and their employees. The HRM practices of a certain nation are rooted in the nation’s cultural and social differences. Locally meaningful elements of HRM are based upon workers’ work related attitudes and values and these deep rooted attitudes and values have a strong connection with employees’ social, occupational and cultural backgrounds. This paper looks at implications of cultural assumptions and characteristics for performance of recruitment and selection, training and development and remuneration of employees and how these HRM functions can be amended to accommodate Japanese cultural assumptions and characteristics. Training and Development Training and development is vital to survival and growth of Japanese organizations in modern day’s competitive business environment Training programs increase the skills of culturally diverse employees, which directly influences employee productivity. Training enhances the capabilities, knowledge and skills of employees for performing a certain job. The process of training also moulds employees’ thinking and results to quality performance. Training and development improves employees’ morale through enhancing job satisfaction and job security. The more gratified employees are the higher is their morale, and the more they will contribute to the success of the organization. Therefore, training and development is an efficient way of overcoming factors that lead to lessen employee job satisfaction and job performance. Training and development needs a particular degree of reciprocity, implying that an organization that undertakes continuous training and development of its staff expands the market value of its staff, which influences workers’ productivity and commitment and might minimize the motivation to leave the organization (Kamoche, 2002). Due to presence of employees from different cultural and ethnic backgrounds, training and development activities differs considerably on the basis of cultural context. In Japan’s collectivist culture, training and development of employees is mainly geared towards the improvement of group or individual performance. According to Stone and Stone-Romero, (2007), training and development activities are also aimed at increasing employees’ commitment and loyalty to the company. Through offering training to their staff, organizations instil the view that they treat their staff well. This view subsequently arouses the need to repay the favour through working hard and remaining commitment to the organization. In this context, training and development is utilized as an equipment to motivate workers and as a way of rewarding them for their commitment and loyalty to the organization (Stone & Stone-Romero, 2007). According to Aycan (2005), because Japan is a collectivist nation and possesses a low performance oriented culture, training and development as a human resource management function should be adjusted so as to offer sufficient training to equip the organizational staff with essential skills and knowledge to undertake their assigned work and also to make workers more committed and loyal to organizations as a result of the view that organizations has done employees a favour through permitting them to attain adequate training. Training of new employees is important because it isn’t automatically that candidate who performed well in the exercise of recruitment of best in undertaking the functions of the organization. New workers require orientation into the functions of the organization and can also promote efficiency that these workers might have in connection to their knowledge and skills. Training is also necessary for employees who have been in the company for a long duration. This is particularly important due to legal changes, technological advancements and shifts in delivery of services. It is vital for organizations to be in date with industry trends so as to remain competition. In addition, in order to attain efficiency in training, the training programs must match with the cognitive abilities of employees. Kamoche (2002) argues that methods and contents of training differ across culture. Therefore cross cultural disparity in cognitive style must be taken into account when designing suitable training programs. Being a collectivist nation, Japanese human resource management should design training programs that suit the cultural orientation of different employees other than utilizing similar training methods to all employees. Training programs should not be restrained to skills improvement should also entail improvement of attitudes which can be achieved via attendance of workshops and seminars and other types of talks. Recruitment and selection Recruitment and selection is an important human resource management function in Japan. Proper recruitment and selection of candidates makes sure that the appropriate individuals with desirable characteristics and knowledge is hired in the organization and that they fit with climate and culture of the company. Additionally, identification of the appropriate employees minimizes the cost of workers’ training and development. Employee recruitment and selection is at times a time consuming and costly task. Organizations of all sizes are required to recruit in order to achieve staffing needs and there are several ways of attracting candidates to a organization. The best methods of recruitment and selection are dependent on the requirements and goals of the company. Prior to placement of an advertisement, human resource manager must take time to look at the organization’s business plan and the way it is connected to the human resource planning. Organizations are required to attract competent employees whose goals and values are in line with the organizational goals and values (Tayeb, 2004). According to Albrecht (2001), the criteria utilized in the process of recruitment and selection of candidates in organizations is often culturally bound and broadly differs across cultures. Cultural contexts also determine the partiality for internal recruitment or external recruitment. The two methods of recruitment are internal recruitment methods and external recruitment methods. Internal recruitment entails recruitment of employees within the organization. It is cost efficient and also promotes employee morale and satisfaction. Before searching for talent from outside the organization, it is important for the human resource management to look at the present employees and determine whether they have the experience or qualifications required to fill the vacant position. External recruitment entails recruiting talent from outside the organization. This method of recruitment and selection has the potential of bringing in new outlooks and skills into the organization (Albrecht, 2001). Because the culture of Japanese organizations is characterized by uncertainty avoidance and high collectivism, the recruitment and selection function of human resource management should employ new employees via internal references and advertisement other than employing externally via open competition and external advertisements such as newspaper. Aycan (2005) notes that internal promotions and hiring are preferred to make sure that employees are committed and loyal to the organization. It is very hard for exteriorly recruited workers to get absorbed into strong social networks in nations and organizations that practice collectivism and to cope with resistances to and resentment of their selection when an interior candidate is supported. In high uncertainty avoidance cultures, companies prefer interior hiring so as to sustain the status quo. In collectivist cultures like that of Japan, word of mouth is a universal scheme of announcing job vacancies in which in group members often get support from other members of the group for the job position (Gully, et al, 2003). Remuneration Remuneration is a significant human resource management practice that Japanese organizations utilize to assess and reward employees. Remuneration offers basic attraction to workers to effectively and efficiently perform their job and also results to motivation of employees. Salaries and wages constitute an significant source of revenue for workers and determine their living standards. In addition, they affect work performance and employees productivity. Therefore, the amount and scheme of employee remuneration are very vital for employees as well as the human resource management. Remuneration results to employee motivation and productivity but doesn’t have to essentially be compensation based. Employee remuneration might also be recognition or praise (Albrecht, 2001). The two basic methods of employee remuneration entail piece rate method and time rate method. In time rate method, remuneration is directly connected with time devoted or spent by the worker on the particular job. Workers are compensated a predetermined amount daily, monthly, hourly or weekly in spite of their work output. Albrecht (2001) notes that this method of remuneration results to minimum waste of resources and quality output. It is advantageous it promotes unity of culturally diverse employees because employees of a certain cadre or group attain equal salaries. Price rate method is a reward method whereby wages and salaries are paid based on pieces or units produced by the worker. In this scheme, emphasis is high on quantity output other than quality output. Price rate methods promote employee morale because compensations are directed linked to work efforts. Stone and Stone-Romero (2007) argue that cultural assumptions and characteristics have significant impact on a company’s remuneration and reward schemes. Since workers in multinational organizations come from diverse experiences and backgrounds, their management is more complex. Unlike in low power distance and high performance culture, in high power distance cultures, salary and wage determination is based upon the subjective assessments of the managers who have the right to allot differential wages and salaries to workers recruited for a similar job. Performance remuneration contingency is lower in the high power distance cultures. In addition, within the high power distance cultures, remuneration allotment is dependent on criteria other than performance like being in a senior level in the organization or being close to the management. Seniority based remuneration is also connected with great level of uncertainty avoidance. The culture of Japan is characterized by low performance orientation and high power distance and there remuneration of employees should be amended to ensure that employees are remunerated on basis subjective decisions made by top management. In a low performance orientation and high power distance culture, workers don’t resist the actuality that differential benefits and salaries are rewarded to different workers on the basis of subjective decisions of top management rather than remunerating benefits and salaries on the basis of a structured compensation scheme (Gully et al, 2003). According to Aycan, (2005), collectivism and individualism plays a vital role on establishment of what form of remuneration system and organization must implement. Being a collectivist nation, remuneration of employees in must be strongly emphasized upon group based compensation other than on individual performance the associated pay for performance scheme. Because individual disparities are downplayed in the Japanese collectivistic cultures, the principle of equality in reward and compensation schemes in very important. Indirect remuneration which entails allowances and benefits provided by a company is also dependent on cross cultural disparities. Favoured remunerations for collectivist cultures entail welfare programs like contributions towards fund, children education or housing loans. The remuneration function of Japanese human resource management must be amended to ensure that employees are compensated on the basis of group based lithe benefits plans such as incentives other than individual compensations. Human resource managers in Japanese organizations should use the time rate method of remuneration because it will encourage employee unity since workers of a certain group will be paid equal salaries. In addition, remuneration given to teams raises levels of productivity since the team looks out for collective good of the particular team. Pooling workers in a team having shared goal raises productivity if the management offer world wild compensation, like extra commissions and bonuses. Conclusion Human resource management practices are greatly influenced by the Japanese cultural assumptions and characteristics. Organizations operating in nations with diverse cultural orientations face the challenge of implementing human resource management practices that are acceptable by a culturally diverse workforce. This is because effective implementation of human resource management practices is dependent on the level at which functions are perceive appropriate and effective by managers and employees. Therefore, Japanese organizations should amend their human resource management functions such as recruitment and selection, training and development and remuneration so as to be effective and culturally appropriate to the national culture. References Stone, D., & Stone-Romero, E., (2007). The influence of culture on human resource management processes and practices. London: Routledge. Albrecht, M., 2001, International Hrm: Managing diversity in the workplace. United Kingdom: Blackwell Business Kamoche, K., (2002). Knowledge creation and learning in international HRM. International Journal of Human Resource Management, 8(2), 213-225. Gully, M., Phillips, M., & Tarique, I., (2003). Collectivism and goal orientation as mediators of national identity on merit pay decisions. International Journal of Human Resource Management, 14 (8), 1368-1390. Aycan, Z., (2005). The interplay between cultural and institutional/structural contingencies in human resource management practices. International Journal of Human Resource Management, 16(7), 1083-1119. Tayeb, H., (2004). The management of multicultural workforce. England: University of Edinburgh. Read More