Background of the study:

In the new global economy, HRM has become a vital issue for the effectiveness
of organizations. In accordance with the existing studies, the shift to
globalization required from corporations to achieve focused performance by all
means. This shift emphasized the necessity for businesses to fully utilize their
human resources engaging suitable practices and strategies (Schuler and
Jackson, 2005). The presence of supportive cultural factors is essential for the
efficiency and success of the HRM result. It seems obvious that the ways
western organizations cope with HRM practices are different from the ways
Middle Eastern organizations with their different cultural and institutional
situations cope with these issues (Westerduin, 2010). Because Arabic countries
have different values and attitudes than the developed countries, which may
determine and shape specific managerial approaches in human resource as cited
by cultural research perspective. As Mendonca and Kanungo (1996) determined
that one of most important cultural dimensions, which is different in western and
eastern cultures and is exclusively important in shaping their HRM strategies, is
the assumption about human resource capability. This restlessness to adopt
western HRM tools could results lack of suitable practice in the Arabian context
(Binjabi, 2011).

Identification of the Problem:

It is attempted through this research to create a better description of the effect
of culture on HRM practices in Saudi Arabia as we know culturally Arab
countries are completely different from other countries. At this moment there is
some literature available on the research subject, but not much research on this
subject conducted until this moment in the context of Arab countries which
present an overview of the current status and trends of HRM in Middle East. It
could emerge that the knowledge of HRM in Arab culture that these
organizations use at this moment is outdated, or that these organization should
be aware of the direction in which the differences between HRM in Western
countries and HRM in Middle Eastern countries are evolving. Also, there are
problems in the image that people in the Western world have of the Arab world.
Negative images in the media of the Middle East prevent these people of
obtaining a correct view of all aspects of the Arab culture and values. The
current research is an attempt to contribute in order to find out the truth. Also by
the help of this research compatibility of HRM practices chosen and
implemented by organizations would be checked with the respect of the Arab
world (in particular, in the Saudi context with a focus on the construction
sector).
Performance appraisal:
Performance appraisal motivates employees to produce (Gong et al., 2009). Alo
(1999) defines performance appraisal as a process involving deliberate stock
taking of the success, which an individual or organization has achieved in
performing allotted tasks or meeting set goals over a period of time. It therefore
shows that performance appraisal practices should be deliberate and not by
chance. It calls for serious approach to knowing how the individual is doing in
performing his or her tasks. Atiomo (2000) agrees with Fajana (1997) that
performance appraisal is a system which provides organizations with a means of
identifying not only what people's performance levels are but which areas those
levels need to be improved if maximum use is to be made of human resource.
According to Atiomo, every organization should ensure that the individual is
clearly aware of what his functions and responsibilities are to make performance
appraisal effective (Obisi, 2011).

Common outcomes of an effective performance appraisal process according to

Beer, (1981) are employees' learning about themselves, employees' knowledge
about how they are doing, employees' learning about 'what management values'.
According to Stephan and Dorfman (1989) outcomes of effective performance
appraisal are improvement in the accuracy of employee performance and
establishing relationship between performance on tasks and a clear potential for
reward. Nurse (2005) viewed delivery of information for the development of
managerial strategies for training and development as an effect of performance
appraisal (Ishaq et al., 2009).

After reviewed the relevant literature a research gap is found that there are
limited studies in that specific area in the Middle East. It is well known that the
Western personnel context and also culture are totally different from that of the
Arab countries in general and Saudi Arabia in particular. A reference to what was
mentioned by Weir (2003) in this context would highlight the importance of such
a research; he argued that HRM was born in U.S.A, developed in Europe and
implemented in Japan; However, he added a fourth paradigm: it is ignored,
unresearched, undeveloped in the Arab Middle East countries (Albugamy, 2010).
So this research is a contribution to fill this knowledge gap by examining the
effect of the Saudi culture on selected HRM practices.

Selective hiring:
Selective hiring is aimed at developing an organizations talent pool.
Organizations serious about gaining profits through people will expend the effort
needed to ensure that they recruit the right people in the first place. This
requires numerous things. First, the organization needs to have a large applicant
pool from which to select. Second, the organization needs to be clear about what
are the most critical skills and attributes needed in its applicant pool. The notion
of trying to find good employees is not very supportive-organizations need to be
as specific as possible about the precise attributes they are seeking. Third, the
skills and abilities hired need to be carefully considered andtrustworthy with the
particular job requirements and the organization's approach to its market
(Pfeffer, 1998).

Huselid (1995) examined HR practices of high performance companies and found

that attracting and selecting the right employees increase the employee
productivity, boost organizational performance, and contribute in reducing
turnover. Cho et al. (2005) examined pre-employment tests as a key component
of selective hiring and found that when employed, these tests can select
employees that stay with a company longer. Passing pre-employment tests may
give an applicant a stronger sense of belonging to the company, resulting in
higher degrees of commitment if employed. Cardon and Stevens (2004) pointed
out that for small companies recruiting is often problematic. This can be due to
several reasons such as limited financial and material resources and jobs with
unclear boundaries responsibilities, which decreases their potential to hire
qualified candidates. Therefore Selective hiring is positively related to firm
growth (Vlachos, 2009).

Human Resource Management (HRM)

and Culture:
The impact of national culture on a variety of Human Resource (HR) practices
has become one of the most important topics in management research (Chen et
al., 2006; Gahan and Abeysekera, 2009). From the perspective of institutional
theory (Scott et al., 2003; Westney, 2005) it is suggested that HR practices are
affected by differences in national culture and that HR practices will be largely
dependent on managers' abilities to understand and balance different cultural
values and practices (Wang et al., 2008). The contingency or external fit
perspective emphasizes the fit between national culture and HR practices,
implying that specific HR policies are affected by national culture.

According to Alcazar et al. (2008), the theories on Human Resource Management

(HRM) have focused on universalistic perspectives for number of years.
Researchers have put great efforts in finding a single human resources theory
that is applicable in every situation, in every organization, every culture, and
every country worldwide, therefore a best practices model. During these
expansions it became more and more clear that this universalistic theory was
non‐existent, and that the solution to the universalistic HRM model should be
sought in a contextual, contingent theory which takes into account a wide range
of factors that influence the fitness of an HRM model in the given setting. By
regarded it, the researchers admitted that a single outline for HRM practices
does not exist. The further globalization of businesses meant that the approach
HRM takes to her tasks differs from several years ago. HRM departments need to
take more factors in consideration than before, including cultural differences,
different labor laws in different countries and different views on labor of the
employees (Westerduin, 2010).

So research (Sonja and Phillips, 2004) assumes that managers in today's

multicultural global business community often encounter cultural differences,
which can hinder with management practices in organizations. Leat and El-kot,
(2007) have emphasized the effect of national culture, a concept that includes
traditions, values, beliefs, attitudes and behavior which influence HRM practices.
Laurent (1986) proposed that HRM methods in any country are a reflection of the
national culture of that country (Albugamy, 2010). Triandis (1972) and Schein
(1992) defined culture in terms of "shared ways of thinking, feeling, and reacting;
shared socially constructed environments and commonly experienced events
including the history, language, and religion of their members" (Pellegrini &
Scandura, 2006). National culture is also defined as the ideas, set of beliefs and
norms followed by the people of a certain country; the country's history, religion
and traditions make up for the national culture (Majeed et al., 2010).

In comparing cultures of different countries, cross-cultural researchers have

focused their attentions on an examination of a set of cultural value dimensions
developed by Hofstede. These dimensions are based on a large sample of
employees from 40 countries from the large multinational IBM, whom he studied
from 1960's, 70's and 80's. According to Gannon & Newman, (2002), after
investigates, examines, and compares more than 50 countries; he is regarded as
the authority in culture differences and how culture differences influence
management strategies. He said: "in global economic integration of the world,
the strategies of all companies in the world are focused on how to meet the
largest market to most customers by products and services; while the study of
different cultures and values, is the key to success of such strategies" (Jing,
2010).

Leading value systems of different countries can be ordered along Hofstede's set
of cultural value dimensions (Hofstede, 1980; Hofstede & Bond, 1988). People's
Dominant value systems have been crystallized in the institutions these people
have built together: their family structures, religious organizations, educational
structures, associations, systems of government, work organizations, law and
regulations, literature, settlement arrangements, and buildings. All of these
reflect common beliefs that derive from the mutual culture. Whereas the value
systems affect human thinking, feeling, action, and the behavior of organizations
and institutions in predictable ways, the value dimensions reflect basic problems
that any society has to cope with but for which solutions differ from country to
country (Hofstede, 1983).

Current study (Gelfand, 2000) concludes that managers in organizations are

recognizing that it is impossible to maintain bias views while doing business
across different cultures. Cultural knowledge and a global focus are crucial to
survive, and to thrive, within today's business environment. However, the same
literature does not give a global focus that is accordant with the global reality of
business. Discussion and empirical assessment of culture and HRM practices
(Aycan, et al, 2000) has been focused on specific developed countries and
developing countries have been given little attention (Nyambegera et al, 2000)
which is the gap in the existing academic knowledge.

International Human Resource Management (IHRM)

Introduction
The paper analyses the different roles played by an international human resource manager. It discusses the
changes in the duties of a human resource manager that are triggered by the globalization of the company. As
the company grows, it achieves its goal of becoming international. Now the achievement of this goal alters
many things as the environment and the people working in the company change. The internationalization of a
company increases the challenges faced by the human resource manager as he now has to comply with
different cultural, social and religious beliefs. A major issue in relation to the internationalization of the work
force is that employees coming from different nations have different cultural values, attitudes and beliefs. It
has been proved by a number of studies that the nationality of people affects the ways in which they conduct,
organize and operate their work. The International Human Resource Management (IHRM) can be defined as
the process through which an organization manages its work force that belongs to different nations and that has
different values and attitudes. The information and proper handling of the cultural differences of the employees
is an essential part of the International Human Resource Management (IHRM), therefore, special attention
should be paid while designing International Human Resource Management (IHRM) policies and it should be
decided with great care that whether standardized policies should be used throughout the world or not.
(Brewster, C. et al., 2003)
Literature Review
Managing human resource is a critical work as different people come from different cultures and different
environment and then it’s the responsibility of the human resource management to accommodate them in one
organizational culture. According to Laurent (1986) ‘a comparative analysis across national culture brings the
startling evidence that there is no such thing as Management with a capital M. The art of managing and
organizing has no homeland’. In relation to the importance of cultural differences in shaping human resource
management and policies Laurent has said that ‘every culture has developed through its own history some
specific and unique insight into the managing of organization and their human resources. Every culture has
also developed specific and unique blindspots in the art of managing and organizing. The lie the still largely
undiscoverd opportunities and threats of international management.’ (Diponegoro, 2009) Human resource is
termed as the most valuable assets of any organization and according to Pfeffer, (1998) , ‘Human Resources
(HR) are usually considered as one of the most valuable assets in an organization, but only a few organizations
generate real benefit out of this resource.’ If an organization and its management want to utilize the maximum
potential of the organization then it should design HRM policies that are in alignment with the mixed culture
of employees. According to, Ahmad & Schroeder, (2003), ‘HRM practices are not always a source of
sustained competitive advantage unless they are aligned with cultural and other contextual factors arising from
the global operating environment of MNCs’ (Abdullah, A. et al., 2006)
Multinational organizations usually face a number of problems while conducting their business in
underdeveloped or developing countries due to huge cultural differences. According to Jaeger & Kanungo,
(1990), ‘MNCs operating in many countries with different socioeconomic and cultural orientations face serious
challenges in implementing Western HRM practices in the developing countries’. Even though cultural
variables play an important role in determining whether an HRM policy is a success or a failure, but the
effectiveness of the policy depends on the manager as well. According to, Eveg & Eqile, (1993), ‘Effective
implementation of HRM practices is largely dependant on the extent to which the practices are perceived to be
appropriate by managers and their subordinates’. Human resource managers should have a thorough
understanding of all the cultural variables before implementing a strategy so that they can maximize the output
of their human resource. (Abdullah, A. et al., 2006)
Due to rapid globalization companies now have to conduct their business overseas. This requires proper
management of the home country, host country and third country employees. According to Ann Rennie and
Rita McGee, (2012), ‘International HR management refers to an extension of HR that relates to having people
working overseas. These can be either expatriate staff, those who are recruited from or work within their own
home countries (locally recruited staff), or even third-country nationals (individuals from neither the ‘parent’
nor ‘home’ country, but rather third country.’ (Rennie & Mcgee, 2012). A human resource manager is a key
employee in the organization and according to Coro Standberg, (2009), ‘Human resource managers are well
positioned to play an instrumental role in helping their organization achieve its goals of becoming a socially
and environmentally responsible firm – one which reduces its negative and enhances its positive impacts on
society and the environment’. (Standberg , 2009)The human resource managers perform a wide variety of
functions. The Michigan Civil Service Commission has described the duties of the human resource manager as
follows, ‘Employees in this job function, as professional human resource managers, direct the work of
professional staff. The employee, under general or administrative supervision, works within general methods,
procedures, and exercises considerable independent judgment to select proper courses of action. The work
requires knowledge of the policies, procedures, and regulations of personnel management and human resources
development programs, and supervisory techniques, personnel policies, and procedures.’ (Human Resources
Manager, n.d.)
Hofstede’s Dimensions of Culture
Hofstede described five dimensions of culture which are as follows, Individualism or collectivism: It describes
the level of relationship between an individual and other individuals in the society.Power Distance: The extent
to which the culture allows the misuse of power.Uncertainty Avoidence: The way in which any specific culture
handles the unpredictability of the future. Masculinity/Femininity: The importance that a culture gives to
different values and practices that are related to the male and female gender.Long-term/Short-term Orientation:
It describes that whether the cultural values focus on the past or present or the future. (Wiletzky, R. et al.,
2009)
essay has been submitted to us by a student
Impact of Culture on Human Resource Policies and Practices.
There is a clear link between the cultural variables and the HRM policies of the organization. Mostly culture
has an impact on the structure of the organization. It also has an impact on the recruitment style, the manner in
which the employees are paid and the pattern of compensations and benefits. For example, an organization
may opt for performance based pay if it is operating in a country which is ranked high on individualism.
(International And Comparative.., 2001)
Impact on Recruitment and Training: The workforce recruitment for overseas assignments is quite different
from that of domestic assignments. As the employees have to work in an entirely different culture so due to
this cultural difference, the third country or home country employees are selected on the basis of their
experience of working internationally, their ability to speak various languages, the extent to which they can
handle stress, their experience with different cultures and their personality (extroverted people are the preferred
ones). The ideal candidates is the one who has got managerial competence and is willing to get trained about
the culture and the language of the country in which the organization is operating and is adaptable that is he
can adjust in the culture of the host country. (Portolese Dias, L. , 2001)
Impact on Training: Employees are generally trained about cultural components when the business is
conducted globally. The purpose of the training is to help employees accommodate in the new culture while
they are overseas on assignments. They are not trained regarding new technologies instead the major
components of training are language, culture, goal setting and managing family and stress. Cultural training is
very important for the success if various assignments, although cultural issues are not discussed openly but if
managers are not aware of the cultural norms then they can fail badly. For example, when Revlon expanded its
business in Brazil, the company launched a perfume with Camellia flower scent. The managers obviously did
not know that Camellia flower was used in funerals in Brazil and the product failed badly. (Portolese Dias, L. ,
2001)
Impact on Compensation and Rewards: When working in different cultures, organizations may go for a
standardized payment method. This means that no matter in which country you are working you will be given
the same salary. But this strategy ignores the fact that the livelihood in one country can be expensive as
compared to the other country. Therefore, organizations usually pay their employees through a banding system
which is based on regions. This payment strategy is known as alocalized payment strategy. Microsoft and
kraftwoods use this strategy. (Portolese Dias, L. , 2001)
Impact on Performance Evaluation: There is a great deal of confusion regarding who should rate the home
country employees. Cultural differences make the evaluation process ineffective as the host country managers
may rate the home country employees harshly or they may rate them politely. For example, in Indonesia
employees and managers value harmony, so the managers may rate the home country employees high in order
to maintain harmony in the organization. (Portolese Dias, L. , 2001)
Impact on HR Priorities: Culture has an influential impact on human resource priorities as the first priority
shifts from employee retention to leadership development. And in q global environment the managers are not
highly concerned about employee retention rather they are interested in developing leaders who can survive in
the new culture and can train their workforce to operate effectively in the global environment. (Rioux, S. et al.,
2003)
Roles Played by an International HR Manager
Due to the increased internationalization, the human resource department and its responsibilities have changed
a lot. The human resource management is the most important business aspect in today’s culturally diversifying
and growing world. Almost all the organizations are developing their HRM functions as major structures that
support the globalization and internationalization process. (Sparrow, 2006) The HR managers have to play an
important part in managing the vastly multicultural environment of an organization (especially in case of
multinationals and organizations with international employees). (Abrams et al., 1998) On the whole the
functions of the HR managers can be categorized as follows:
essay
Planning the HR of an organization: It is the most important and critical function of the HR managers.
Planning the HR has many phases including the determination of the number of HR required in various
departments or business units, number of HR that should be made redundant, desired professional and other
competencies of the new vacancies, possible transfers etc. (Armstrong, 2003)
HR managers can make the organization an efficient work place by planning the human resources in the most
suitable manner. When an HR manager conducts the proper planning before hiring the employees at a new
overseas branch of a multinational organization, it would lead the organization to have the best possible
employees inducted and transferred from other locations. The manager would be well aware of the job
requirements and will end up having the most suitable candidates, who are well taught in their areas to
contribute towards the progress. Further, the cultural issues that might arise will be highlighted beforehand;
therefore, precautionary measures and steps will be taken to avoid major issues. (Sparrow, 2006) This also
includes designing and implementing the most efficient global HR policies. (Farndale & Paauwe, 2005)
Recruitment and Selection: Recruiting and selecting the most suitable candidate for any vacancy is also an
important function of HR manager. As a selection of the most appropriate candidate will lead the effective
management of the job and timely completion of the tasks. This will positively contribute towards the success
of the organization. (Ansari, 2011)
Since, human resources contribute directly towards the success and failure of any Organization, especially
those working around the globe, the HR manager has to take into consideration the local as well as
international requirements and available candidates throughout the globe. (Sparrow, 2006)
Exercising this function properly emphasizes on the selection of the suitable international employees that meet
the requirements of a job and lead the organizations towards the achievement of their vision, as well as
ensuring compliance with the requirements of the host country. Recruitment and selection function of the
international HR managers also grants the organization acceptance in a new culture and location by smartly
recruiting the locals and gaining the trust of the new society. (Gilmore and William, 2009)
Employee Participation and Motivation: In order to succeed as a multinational and multicultural organization,
the HRM function should take steps to keep the employees motivated by creating and maintain a culture of
mutual respect and understanding between all the employees. (Aswathappa, 2005) Cross cultural issues,
religious and social diversifications, society issues etc shall be eradicated from root and an environment of
open mindedness and general acceptance shall be created to ensure full participation of all the employees. HR
managers play a crucial role here by designing policies, conducting surveys / trainings etc to help employee gel
with each other. Making teams and groups to carry out certain tasks and organizing events (such as dinners,
picnics, etc.) also help in achieving the state of maximum employee motivation and participation. (Farndale &
Paauwe, 2005)
Performance Management and Appraisals: In order to ensure the continuous development of the employees
and to check out that the cross cultural and other differences are not interfering with the success and growth of
the organization, the HR managers play a grand role in developing and implementing the performance
measurement and appraisal policies. By conduction regular appraisals the defects and issues can be highlighted
and communicated at all the levels, ensuring early resolution of all the problems and eradication of potential
problems amongst the employees or with any specific employee. Here too the mangers of to use tact and
intelligence to stay away from society issues and pressures regarding local and international employees
respectively. (Brewster et al., 2011)
Conclusion
Culture has a critical influence on the human resource management policies and practices and if the
management aligns its strategies with the cultural variables then this would result in increased employee
commitment and can result in cost effectiveness as well. When employees would be aware of the norms and
values of the culture in which they are operating then they would conduct their work according to those norms.
By training the employees according to the cultural requirements organizations can increase their customer
satisfaction level as well, because the employees would better entertain the consumers. Human resource is the
most valuable asset of the organizations and while operating overseas organizations must align their human
resource policies and practices with the cultural variables so that the employees may perform at their best
possible level. (Gomes, S., n.d.)With the rapid globalizations and internationalization of organizations, the
trend for hiring cross cultural employees have brought forward a lot of issues and problems for an
organization. This includes rejection of an organization by a society, cross cultural issues, communication gap,
lack of employee motivation and participation. The growing trend of globalization and hiring international
employees leaves a huge cultural impact on the HR management policies and techniques. The HR department
of an organization plays a vital role in the successful growth and globalization of an organization along with
developing and adopting policies to the need of the internationally established and diversified organizations.
today's workforce is truly mixture of different races, ages,
genders, ethnic groups, religions and lifestyles (Mor-Barak,
2005). It is the job of the management of the organisation to
fit together different pieces of mosaic in a harmonious,
coordinated way and utilising the abilities and talents of
each employee to its maximum. If skilfully managed,
diversity can bring a competitive advantage to an
organisation. If not, however, the bottom line can be
negatively affected and the work environment can become
unwelcoming (Henderson, 2001). Many organisations have
recognised that the workforce is changing and they are
working to create a work environment in which diversity and
difference are valued and in which employees can work to
their fullest. They are dealing with the problems that arise
when people in the workplace communicate. Businesses
must be aware of the impact of cultural diversity on
important business factors especially communication and
the degree of the effect of cultural diversity on it
(Henderson, 2001).

People and the

organisation:
Today's workforce is made up of many types of people.
Organisations can no longer assume that every employee
has similar beliefs or expectations. Organizations exist to
serve human needs. An organisation is only effective as the
people who operate it. People are considered the most
important resource in any organisation (Mor-Barak, 2005).
They are the basic foundation of an organization and the
basic unit of change within organisation. The human
resource approach focuses on the interaction between
people and the organization. If communication between
employees is poor, organisation will suffer. When
coordination and interaction within the organisation is good,
both employees and business will benefit.

Cultural Diversity:
Culture is an important dimension of group diversity that
influences communication. Culture is the integrated system
of beliefs, values, behaviours and communication patterns
that are shared by those socialized within the same social
group. Cultural diversity is the mixture of societies or
cultures in a specific region. It is also referred to
multiculturalism within an organization (Konard et al. 2006).
Obvious cultural differences exist between people, such as
language, attitudes, traditions, clothing or dress. There are
also significant variations in the way culture or society
organizes itself, in its shared morality conception, and in the
behaviour they interact with their environment (Henderson,
2001).

Diversity in the Workplace:

Workplace diversity refers to the division of the working
force into separate categories that have a apparent unity or
harmony within a given cultural context and that impact
potentially beneficial or harmful outcomes of employments
such as job opportunities, workplace treatment prospects of
promotion of employees, irrespective of job related
qualification and skills (Stockdale and Crosby, 2004).
Diversity can be defined differently by different cultures and
organisations. A view of business, organisation and human
resource literature produced three types of definitions of
diversity: Narrow category-based definition (e.g. gender,
racial or ethnic differences); broad category-based definition
(e.g. a long list of categories including such variables as
marital status and education); and conceptual rule definition
that is based on variety of perspectives, differences in
perceptions and actions (Thiederman, 2008). Some of the
distinction categories may either have a positive or negative
impact on employment and job prospects in different
countries (Albrecht, 2001). Against the backdrop of broad
definitions, on the one hand, and the narrow ones on the
other, generating a definition of workplace diversity that will
be relevant and applicable in different cultures proves to be
a challenge. Workplace diversity focused on the similarities
and differences of the people that they bring to an
organization. It is generally defined to include dimensions
which influence the perspectives and identities that
employees have such as profession, education and
geographic location. Diversity as a concept is considered to
be inclusive of everyone (Albrecht, 2001). Diversity plans
create the organisational environment and workplace
culture by making differences work. It is about teaching and
learning from others who are different, it is about respect
and dignity for all, and about creating environments at
workplace practices that encourage learning from others
and capture the advantage of diverse perspectives. Most
scholars agree that diversity in the workplace utilizes
employee skills to the fullest and contributes to the overall
growth and prosperity of the organisation. It is based on the
idea identities should not be discarded or ignored, but
instead, should be maintained and valued (Henderson, 2001).

Managing Diversity:
Increasing cultural diversity is forcing organisations to learn
and motivate people with a broader range of value systems.
To succeed in managing workforce that is increasingly
diverse and multinational, managers need knowledge about
cultural differences and similarities among people from
different backgrounds (Golembiewski, 2000). They also need
to be sensitive to these differences that can contribute to
their effectiveness in cross cultural communication. In
today's global business world, a manager has to understand
cultural differences and their meanings in business
relations. The manager who manages diversity should
understand that diversity includes every employee. It is a
challenge to successfully apply skills, energy, and
commitment of employees to make an organization better. It
is of primary importance that the manager understands the
cultural beliefs and values of the organisation for effectively
managing diversity (Golembiewski, 2000). These beliefs and
values group together to create an environment that
employee perceive as supportive or not supportive of
diversity. Within all organizations there are culturally
supportive and non supportive people, policies, and informal
structures. Managers should carefully plan and implement
organisational systems and practices to manage employees
so that the diversity's potential advantages are maximised
and disadvantages minimized (Jackson, 1999). It should be
the policy of the company not to engage in discrimination
against or harassment of any person on the basis of race,
nationality, colour, sex, gender, religion, identity, physical or
mental disability, marital status, ancestry, sexual
orientation, age or citizenship. This policy should be applied
to all employment practices, including selection,
recruitment, transfer, promotion, increase in merit, salary,
training and development, demotion, and separation
(Henderson, 2001).
The organisations need to understand and accept cultural
and communication differences, show respect, empathise
and be flexible to communication issues in the workforce
environment. It should be knowledgeable about ethical
issues and understand values, communicate decisions
regarding these issues to employees and keep
communication channels open for all employees to feedback
information without fear and revenge. Organisation should
adapt the policies that directly or indirectly affect the
diversity issues (Griffin and Hirsch, 1998). It is important
how the organisation addresses and responds to problems
that arise from diversity. It must reflect its stance on
diversity in its mission statement. If the mission statement
articulates a clear and direct commitment to diversity,
everyone who comes into contact with that mission
statement will grow to understand and accept the
importance of diversity. Organisations can also manage
diversity through a variety of ongoing practices (Jackson,
1999).
The organisations need to understand and accept cultural
and communication differences, show respect, empathise
and be flexible to communication issues in the workforce
environment. It should be knowledgeable about ethical
issues and understand values, communicate decisions
regarding these issues to employees and keep
communication channels open for all employees to feedback
information without fear and revenge. Organisation should
adapt the policies that directly or indirectly affect the
diversity issues (Griffin and Hirsch, 1998). It is important
how the organisation addresses and responds to problems
that arise from diversity. It must reflect its stance on
diversity in its mission statement. If the mission statement
articulates a clear and direct commitment to diversity,
everyone who comes into contact with that mission
statement will grow to understand and accept the
importance of diversity. Organisations can also manage
diversity through a variety of ongoing practices (Jackson,
1999).

Impacts of diversity on
workplace environment:
Workplace diversity provides strengths as well as offer
challenges to the organisation. Cultural diversity is
meaningful. It helps employees to learn from each other, to
understand each other's differences (Griffin and Hirsch,
1998). Cultural diversity affects the businesses in many
ways including the staff recruitment/retention, management
styles and decision-making processes, and relationships
within organizations. Cultural diversity often improves and
develops workplace by helping as learning experiences for
employers as well as employees. When an organisation
embrace diversity and realize its benefits, it can succeed
and compete more effectively (Henderson, 2001). When it
dynamically considers and asses the handling of issues
related to workplace diversity; develop and implement
diversity plans, it can increase its adaptability. Different
employees bring individual talents and experiences and
suggest suggesting flexible ideas in adapting to ever
changing markets. An organisation can globally provide
service with a diverse collection of skills and experiences.
Organisations that encourage workplace diversity, inspire
their employees to perform to their highest ability. Different
strategies are then executed; resulting in higher
productivity, profit, and return on investment (Konard et al.
2006).
On the other hand, diversity issues costs money, time and
efficiency. If not managed properly it can create problems.
Some of the consequences include unhealthy tensions
between employees or with management; loss of
productivity and business performance because of increased
conflict; organisations' inability to attract and retain skilled
and talented people of all kinds; complaints and legal
actions; difficulty in retaining valuable employees, resulting
in lost investments in recruitment and training (Stockdale
and Crosby, 2004). Organisations taking full advantage of
the benefits of diversity in the workplace also need to
understand that it is not without its challenges. Cultural,
interpersonal, perceptual and language barriers need to be
overcome for diversity policies and programs to succeed.
Ineffective communication of key objectives results in
confusion, low morale of employees and lack of teamwork.
There are always employees who will refuse to accept the
fact that the social and cultural makeup of their workplace
is changing. The insistence on doing the same and in usual
way silences new ideas and inhibits progress (Albrecht,
2001).
Although cultural diversity presents a challenge,
organisations should view it as an opportunity rather than a
limitation. When managed properly, cultural diversity can
provide competitive advantages for an organisation. An
organisation that manages diversity properly can develop
cost advantages over other organisations and are in much
better position to attract the best personnel. Proper
guidance and management of diversity can improve the level
of creativity in an organisation (Henderson, 2001).
Intercultural
communication:
Diversity in the workplace is strategic force influencing
communication (Samovar et al. 2008). Communication in its
most basic form is defined as the use of symbols to convey
meanings. Culture is the integrated system of beliefs,
values, behaviours and communication patterns that are
shared by those socialized within the same social group.
When persons socialized in different cultures and co-
cultures look from the same point in same direction, they
often see different things, and these different perceptions
shape their communication (Samovar et al. 2008). Being
different from others in an organisation can adversely affect
communication and coordination. People from different
cultures bring different set of assumptions about
appropriate ways to coordinate and communicate in an
organisation. Understanding how to communicate
effectively with people from other cultures has become
integral to the work environment of many organisations
(Samovar et al. 2009). Managers who manage diversity need
to be sensitive to cultural differences that can contribute to
the effectiveness in cross cultural communication. Cross
cultural communication involves several potential barriers
to communication that are related to the use of verbal and
non-verbal methods to convey meanings that may or may not
be the same in the cultures of origin of the participants
(Samovar et al. 2008). Often the message that is
communicated, maybe different from the one that was
intended because of cultural barriers. The use of different
languages often creates barrier to communication because
one or both sides are not articulate as they could be in their
native tongue. Linguistic diversity is an important aspect of
global diversity. Managing a workforce that does not share a
common language can present a major challenge to both
employees and management (Cragon and Wright, 2008).

Factors effecting
communication:
Cultural diversity can have a powerful effect on
communication within the organisation. Problems occur
between people of different cultures primarily because
people tend to assume that their own cultural norms are the
right ways to do things. They wrongly believe that the
specific patterns of behaviour desired in their own culture
are universally valued (Samovar et al. 2008). They have
stereotypes about other cultures that interfere with
communication when people interact. Workplace diversity
can lead to misunderstandings and miscommunications, but
it also poses opportunities to improve both workers and
organisations. Managers must be prepared to communicate
effectively with workers of different cultural backgrounds
(Samovar et al. 2009). A diverse workforce poses various
communication challenges to an organisation.
Misunderstandings, inaccuracies, inefficiencies and
slowness are typical communication problems experienced
by diverse groups. Communication breakdowns occur when
members often assume that the other party understands the
message when in fact they do not. Even when the same
language is used people often interpret the information
differently (Samovar et al. 2009). Therefore, the message
sent is not always the message received. Differences in
communication styles and non verbal communication can
create problems. Communication problems due to diversity
may become magnified because people are afraid or
otherwise unwilling to discuss openly about the issues.
Trust is an important factor that plays a significant role in
intercultural, interracial and inter-gender communication. A
lack of trust can result in miscommunication. Accent is
another factor creating problems in communication as some
people react negatively to different accents. It is even
considered rude if someone does not speak in the official
language. People make judgements and mental picture
(stereotypes) about others based on the kinds of expression
they use because of the region (regional jargon) from which
they come. The fact that people have different experiences
accounts for many of the problems that occur when they try
to interact cross culturally. These experiences directly
relate to ability to communicate. Cultural, racial and gender
differences affect the workforce experiences (Samovar et al.
2009).
Workplace diversity also has an impact on workplace
communication that depends upon the culture the
organisation has. Whether one holds the individualistic or
collectivistic viewpoint is likely to influence communication
when working in cross-cultural teams. Individuals socialized
in individualistic culture maybe more inclined towards using
direct strategy when trying to manage a situation or issue
(Henderson, 2001). Likewise those socialized in
collectivistic culture maybe likely to encourage
collaborative strategies. Power distance is the important
factor that cannot be ignored when dealing with workplace
diversity. It refers to how different cultures and societies
respond to human inequality, specifically on how individuals
respond to relative power of superior or subordinate and
how they interact with others, whether the communication
should be informal or formal organised or not. There are
many other factors related to cultural diversity that can
effect communication and that also high or low. Examples
are masculinity-femininity and high-context versus low
context (Samovar et al. 2009).

Conclusion:
Cultural diversity can have a powerful effect on
communication within the organisation. In today's business
world organisations have become multicultural
communities. With many new cultures now living and
working at the same place that were just rare to see only a
few years ago, organizations should be aware of these and
how to communicate without being negative The face of the
workplace is changing as more females and more ethnic
minorities are entering the work force. As a result, the
workplace is increasingly multicultural. Effective
intercultural communication requires more than simply
recognizing differences; it requires the organisation to
respect and know how to deal with those differences.
Intercultural communication often is not easy but there are
ways to effective intercultural communication: Written,
verbal, and nonverbal communication skills; tolerance for
ambiguity; respect for differences; flexibility; willingness to
see other person's point of view; suspension of assumptions
and judgments; time and practice.
Video: Discover UK Essays!
Culture and Assumptions
The basis of incorporating a cross cultural framework of understanding in interviews
is in overcoming 'assumptions'.

Assumptions refer to several inter-related elements. Interviewers assume what

should or should not happen, what is normal and abnormal, and what is correct or
wrong. Assumptions also refer to what someone's physical appearance says about
them, what their body language says about their confidence, how people
communicate and how they present themselves.

For example, a cross cultural interview is taking place between an English

interviewer and a German interviewee. Fairly early on in the interview the
interviewer starts to make assumptions regarding the person's character,
personality and suitability for the post based on misperceptions of the German
candidates appearance, behaviour and communication style. Although the
interviewee is rather high-brow, blunt in conversation, formal and academic in
demeanour this does not mean he/she is rigid, inflexible or reserved as the
interviewer assumes. Rather, this is how the play is acted out in Germany. If the
interviewer had been a bit more aware of German theatre (i.e. cross culturally
aware), then possibly such assumptions would not have been made.

As we can see from the above example, assumptions can lead to interviewers
making the wrong decision based on their cultural assumptions. In this case, they
could have potentially lost a genuinely positive addition to their company.

In addition to the areas mentioned in the example above, interviewers must also be
aware of culturally ingrained assumptions made about areas such as eye contact,
tone of voice, gestures, posture, showing emotions, the giving out of information and
the use of language to name but a few. All have a cross cultural element that needs
to be understood properly.

Eye contact is a sign of confidence and trust in the UK and other European
countries. However, if a Chinese individual is being interviewed and maintains no eye
contact does this equal them hiding something or being unconfident? No, because in
China it is considered rude to maintain eye contact.

Similarly, to speak loudly and clearly may be construed to be a positive trait in the
UK, but in many other countries such as Malaysia they believe speaking softly is a
good quality.

In the UK and other 'western' nations, we communicate explicitly, meaning we

divulge information beyond the topic at hand based on the premise the listener is
unaware of background or correlating issues. Implicit communicators, such as the
Japanese, divulge little as they believe the listener will be aware of such issues. A
Japanese interviewee therefore is not being purposefully vague, but on the contrary
assumes you understand what he/she means to imply.

To 'name drop' in interviews may be considered inappropriate for many recruiters in

Europe, however in countries where family and community ties play a greater role
such as in Mediterranean countries, to mention your relationship with someone of
influence is natural.

Although Latin Americans are very expressive and emotional, this does not equal
them being excitable and unstable and therefore unsuitable for professional jobs.

Language also plays a crucial role in cross cultural interviews. Where the
interviewee's English is not strong, the use of metaphors, proverbs and
colloquialisms will confuse them. Similarly, technical terms are not valid across
borders. Where lengthy pauses are made by interviewees rather than assume they
are playing for time or do not know the answer, the interviewer should assume they
are searching for a word, phrase or merely digesting the information contained
within the question.

The key point is that assumptions must be overcome if recruiters are to do their job
effectively. All the above examples of misperceptions are based upon cultural
assumptions as to what things mean. It is therefore critical that recruitment staff
start to assess, analyse and overcome cultural assumptions through greater cross
cultural awareness if they wish to do the best for their companies.

In today's globalised reality, organisations and companies need the creative and
dynamic input from a culturally diverse staff. The only way to achieve this is to
ensure that such staff are not being improperly discounted for positions due to cross
cultural misperceptions. Once this is taken on board and acted upon, the play will
again start to make sense to all involved.

Introduction:
Today's workforce is truly mixture of different races, ages, genders, ethnic groups, religions and lifestyles
(Mor-Barak, 2005). It is the job of the management of the organisation to fit together different pieces of
mosaic in a harmonious, coordinated way and utilising the abilities and talents of each employee to its
maximum. If skilfully managed, diversity can bring a competitive advantage to an organisation. If not,
however, the bottom line can be negatively affected and the work environment can become unwelcoming
(Henderson, 2001). Many organisations have recognised that the workforce is changing and they are working
to create a work environment in which diversity and difference are valued and in which employees can work to
their fullest. They are dealing with the problems that arise when people in the workplace communicate.
Businesses must be aware of the impact of cultural diversity on important business factors especially
communication and the degree of the effect of cultural diversity on it (Henderson, 2001).

People and the organisation:

Today's workforce is made up of many types of people. Organisations can no longer assume that every
employee has similar beliefs or expectations. Organizations exist to serve human needs. An organisation is
only effective as the people who operate it. People are considered the most important resource in any
organisation (Mor-Barak, 2005). They are the basic foundation of an organization and the basic unit of change
within organisation. The human resource approach focuses on the interaction between people and the
organization. If communication between employees is poor, organisation will suffer. When coordination and
interaction within the organisation is good, both employees and business will benefit.

Cultural Diversity:
Culture is an important dimension of group diversity that influences communication. Culture is the integrated
system of beliefs, values, behaviours and communication patterns that are shared by those socialized within the
same social group. Cultural diversity is the variety of human societies or cultures in a specific region, or in the
world as a whole. It is also referred to multiculturalism within an organization (Konard et al. 2006). Obvious
cultural differences exist between people, such as language, dress and traditions, there are also significant
variations in the way societies organize themselves, in their shared conception of morality, and in the ways
they interact with their environment (Henderson, 2001).
Diversity in the Workplace:
Workplace diversity refers to the division of the workforce into distinction categories that have a perceived
commonality within a given cultural or national context and that impact potentially harmful or beneficial
employment outcomes such as job opportunities, treatment in the workplace and promotion prospects,
irrespective of job related skills and qualifications (Stockdale and Crosby, 2004). Diversity can be defined
differently by different cultures and organisations. A view of business, organisation and human resource
literature produced three types of definitions of diversity: Narrow category-based definition (e.g. gender, racial
or ethnic differences); broad category-based definition (e.g. a long list of categories including such variables as
marital status and education); and conceptual rule definition that is based on variety of perspectives,
differences in perceptions and actions (Thiederman, 2008). Some of the distinction categories may either have
a positive or negative impact on employment and job prospects in different countries (Albrecht, 2001). Against
the backdrop of broad definitions, on the one hand, and the narrow ones on the other, generating a definition of
workplace diversity that will be relevant and applicable in different cultures proves to be a challenge.
Workplace diversity focused on the similarities and differences of the people that they bring to an organization.
It is usually defined broadly to include dimensions which influence the identities and perspectives that
employees have such as profession, education and geographic location. As a concept, diversity is considered to
be inclusive of everyone (Albrecht, 2001). Diversity initiatives create the workplace environment and
organizational culture by making differences work. It is about teaching and learning from others who are
different, it is about dignity and respect for all, and about creating workplace environments and practices that
encourage learning from others and capture the advantage of diverse perspectives. Most scholars agree that
diversity in the workplace utilizes employee skills to the fullest and contributes to the overall growth and
prosperity of the organisation. It is based on the idea identities should not be discarded or ignored, but instead,
should be maintained and valued (Henderson, 2001).

Managing Diversity:
Increasing cultural diversity is forcing organisations to learn and motivate people with a broader range of value
systems. To succeed in managing workforce that is increasingly diverse and multinational, managers need
knowledge about cultural differences and similarities among people from different backgrounds
(Golembiewski, 2000). They also need to be sensitive to these differences that can contribute to their
effectiveness in cross cultural communication. In today's global business world, a manager has to understand
cultural differences and their meanings in business relations. The manager who manages diversity should
understand that diversity includes every employee. It is a challenge to successfully apply skills, energy, and
commitment of employees to make an organization better. It is of primary importance that the manager
understands the cultural beliefs and values of the organisation for effectively managing diversity
(Golembiewski, 2000). These beliefs and values group together to create an environment that employee
perceive as supportive or not supportive of diversity. Within all organizations there are culturally supportive
and non supportive people, policies, and informal structures. Managers should carefully plan and implement
organisational systems and practices to manage employees so that the potential advantages of diversity are
maximised and disadvantages minimized (Jackson, 1999). It should be the policy of the company not to
engage in discrimination against or harassment of any person on the basis of race, colour, national origin,
religion, sex, gender identity, pregnancy, physical or mental disability, ancestry, marital status, age, sexual
orientation or citizenship. This policy apply to all employment practices, including recruitment, selection,
promotion, transfer, merit increase, salary, training and development, demotion, and separation (Henderson,
2001).
The organisations need to understand and accept cultural and communication differences, show respect,
empathise and be flexible to communication issues in the workforce environment. It should be knowledgeable
about ethical issues and understand values, communicate decisions regarding these issues to employees and
keep communication channels open for all employees to feedback information without fear and revenge.
Organisation should adapt the policies that directly or indirectly affect the diversity issues (Griffin and Hirsch,
1998). It is important how the organisation addresses and responds to problems that arise from diversity. It
must reflect its stance on diversity in its mission statement. If the mission statement articulates a clear and
direct commitment to diversity, everyone who comes into contact with that mission statement will grow to
understand and accept the importance of diversity. Organisations can also manage diversity through a variety
of ongoing practices (Jackson, 1999).

Impacts of diversity on workplace environment:

Workplace diversity provides strengths as well as offer challenges to the organisation. Cultural diversity is
meaningful. It helps employees to learn from each other, to understand each other's differences (Griffin and
Hirsch, 1998). Cultural diversity affects the businesses in many ways including the staff recruitment/retention,
management styles and decision-making processes, and relationships within organizations. Cultural diversity
often improves and develops workplace by helping as learning experiences for employers as well as
employees. When an organisation embrace diversity and realize its benefits, it can succeed and compete more
effectively (Henderson, 2001). When it actively assess the handling of workplace diversity issues, develop and
implement diversity plans, it can increase its adaptability. Different employees bring individual talents and
experiences and suggest suggesting flexible ideas in adapting to ever changing markets. An organisation can
globally provide service with a diverse collection of skills and experiences. Organisations that encourage
workplace diversity in inspire all of their employees to perform to their highest ability. Different strategies are
then executed; resulting in higher productivity, profit, and return on investment (Konard et al. 2006).
On the other hand, diversity issues costs money, time and efficiency. If not managed properly it can create
problems. Some of the consequences can include unhealthy tensions between employees or with management;
loss of business performance and productivity because of increased conflict; inability to attract and retain
talented people of all kinds; complaints and legal actions; and inability to retain valuable employees, resulting
in lost investments in recruitment and training (Stockdale and Crosby, 2004). Taking full advantage of the
benefits of diversity in the workplace is not without its challenges. Perceptual, cultural and language barriers
need to be overcome for diversity programs to succeed. Ineffective communication of key objectives results in
confusion, lack of teamwork, and low morale. There are always employees who will refuse to accept the fact
that the social and cultural makeup of their workplace is changing. The "we've always done it this way"
mentality silences new ideas and inhibits progress (Albrecht, 2001).
Although cultural diversity presents a challenge, organisations should view it as an opportunity rather than a
limitation. When managed properly, cultural diversity can provide competitive advantages for an organisation.
An organisation that manages diversity properly can develop cost advantages over other organisations and are
in much better position to attract the best personnel. Proper guidance and management of diversity can
improve the level of creativity in an organisation (Henderson, 2001).

Intercultural communication:
Diversity in the workplace is strategic force influencing communication (Samovar et al. 2008).
Communication in its most basic form is defined as the use of symbols to convey meanings. Culture is the
integrated system of beliefs, values, behaviours and communication patterns that are shared by those socialized
within the same social group. When persons socialized in different cultures and co-cultures look from the same
point in same direction, they often see different things, and these different perceptions shape their
communication (Samovar et al. 2008). Being different from others in an organisation can adversely affect
communication and coordination. People from different cultures bring different set of assumptions about
appropriate ways to coordinate and communicate in an organisation. Understanding how to communicate
effectively with people from other cultures has become integral to the work environment of many
organisations (Samovar et al. 2009). Managers who manage diversity need to be sensitive to cultural
differences that can contribute to the effectiveness in cross cultural communication. Cross cultural
communication involves several potential barriers to communication that are related to the use of verbal and
non-verbal methods to convey meanings that may or may not be the same in the cultures of origin of the
participants (Samovar et al. 2008). Often the message that is communicated, maybe different from the one that
was intended because of cultural barriers. The use of different languages often creates barrier to
communication because one or both sides are not articulate as they could be in their native tongue. Linguistic
diversity is an important aspect of global diversity. Managing a workforce that does not share a common
language can present a major challenge to both employees and management (Cragon and Wright, 2008).

Factors effecting communication:

Cultural diversity can have a powerful effect on communication within the organisation. Problems occur
between people of different cultures primarily because people tend to assume that their own cultural norms are
the right ways to do things. They wrongly believe that the specific patterns of behaviour desired in their own
culture are universally valued. They have stereotypes about other cultures that interfere with communication
when people interact. Workplace diversity can lead to misunderstandings and miscommunications, but it also
poses opportunities to improve both workers and organisations. Managers must be prepared to communicate
effectively with workers of different cultural backgrounds. A diverse workforce poses various communication
challenges to an organisation.
Misunderstandings, inaccuracies, inefficiencies and slowness are typical communication problems experienced
by diverse groups. Communication breakdowns occur when members often assume that the other party
understands the message when in fact they do not. People interpret information differently even when the same
language is used. Therefore, the message sent is not always the message received. Differences in
communication styles and non verbal communication can create problems. Communication problems due to
diversity may become magnified because people are afraid or otherwise unwilling to discuss openly about the
issues. Trust is an important factor that plays a significant role in intercultural, interracial and inter-gender
communication. A lack of trust can result in miscommunication. Accent is another factor creating problems in
communication as some people react negatively to different accents. It is even considered rude if someone
does not speak in the official language. People make judgements and mental picture (stereotypes) about others
based on the kinds of expression they use because of the region (regional jargon) from which they come. The
fact that people have different experiences accounts for many of the problems that occur when they try to
interact cross culturally. These experiences directly relate to ability to communicate. Cultural, racial and
gender differences affect our experiences.

Human Resource Management (HRM)

and Culture:
The impact of national culture on a variety of Human Resource (HR) practices
has become one of the most important topics in management research (Chen et
al., 2006; Gahan and Abeysekera, 2009). From the perspective of institutional
theory (Scott et al., 2003; Westney, 2005) it is suggested that HR practices are
affected by differences in national culture and that HR practices will be largely
dependent on managers' abilities to understand and balance different cultural
values and practices (Wang et al., 2008). The contingency or external fit
perspective emphasizes the fit between national culture and HR practices,
implying that specific HR policies are affected by national culture.
According to Alcazar et al. (2008), the theories on Human Resource Management
(HRM) have focused on universalistic perspectives for number of years.
Researchers have put great efforts in finding a single human resources theory
that is applicable in every situation, in every organization, every culture, and
every country worldwide, therefore a best practices model. During these
expansions it became more and more clear that this universalistic theory was
non‐existent, and that the solution to the universalistic HRM model should be
sought in a contextual, contingent theory which takes into account a wide range
of factors that influence the fitness of an HRM model in the given setting. By
regarded it, the researchers admitted that a single outline for HRM practices
does not exist. The further globalization of businesses meant that the approach
HRM takes to her tasks differs from several years ago. HRM departments need to
take more factors in consideration than before, including cultural differences,
different labor laws in different countries and different views on labor of the
employees (Westerduin, 2010).

So research (Sonja and Phillips, 2004) assumes that managers in today's

multicultural global business community often encounter cultural differences,
which can hinder with management practices in organizations. Leat and El-kot,
(2007) have emphasized the effect of national culture, a concept that includes
traditions, values, beliefs, attitudes and behavior which influence HRM practices.
Laurent (1986) proposed that HRM methods in any country are a reflection of the
national culture of that country (Albugamy, 2010). Triandis (1972) and Schein
(1992) defined culture in terms of "shared ways of thinking, feeling, and reacting;
shared socially constructed environments and commonly experienced events
including the history, language, and religion of their members" (Pellegrini &
Scandura, 2006). National culture is also defined as the ideas, set of beliefs and
norms followed by the people of a certain country; the country's history, religion
and traditions make up for the national culture (Majeed et al., 2010).

In comparing cultures of different countries, cross-cultural researchers have

focused their attentions on an examination of a set of cultural value dimensions
developed by Hofstede. These dimensions are based on a large sample of
employees from 40 countries from the large multinational IBM, whom he studied
from 1960's, 70's and 80's. According to Gannon & Newman, (2002), after
investigates, examines, and compares more than 50 countries; he is regarded as
the authority in culture differences and how culture differences influence
management strategies. He said: "in global economic integration of the world,
the strategies of all companies in the world are focused on how to meet the
largest market to most customers by products and services; while the study of
different cultures and values, is the key to success of such strategies" (Jing,
2010).

Leading value systems of different countries can be ordered along Hofstede's set
of cultural value dimensions (Hofstede, 1980; Hofstede & Bond, 1988). People's
Dominant value systems have been crystallized in the institutions these people
have built together: their family structures, religious organizations, educational
structures, associations, systems of government, work organizations, law and
regulations, literature, settlement arrangements, and buildings. All of these
reflect common beliefs that derive from the mutual culture. Whereas the value
systems affect human thinking, feeling, action, and the behavior of organizations
and institutions in predictable ways, the value dimensions reflect basic problems
that any society has to cope with but for which solutions differ from country to
country (Hofstede, 1983).

Current study (Gelfand, 2000) concludes that managers in organizations are

recognizing that it is impossible to maintain bias views while doing business
across different cultures. Cultural knowledge and a global focus are crucial to
survive, and to thrive, within today's business environment. However, the same
literature does not give a global focus that is accordant with the global reality of
business. Discussion and empirical assessment of culture and HRM practices
(Aycan, et al, 2000) has been focused on specific developed countries and
developing countries have been given little attention (Nyambegera et al, 2000)
which is the gap in the existing academic knowledge.

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Bogićević, Milikić, B. (2009). The influence of culture on human resource management processes and practices: the propositions
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