Human Resource (HR) Practices and

Cultural dimensions
Part 1
Paul Hill
 Objectives
• To introduce the issue of the relationship
between culture and management
• To analyse the issue of the relationship
between culture and human resource
management
 Management
• Managers: Experts or Problem solvers ?
• Links with Hofstede’s dimensions and
Expectations of Hierarchical status in relation
to this question linked to expectations of
subordinates
• USA/Scandinavia- role of manager is to be a
problem solver (US- if they give all the
answers then stifles initiative of subordinate)
 Management
• Indonesia/Japan- opposite of US- managers
should have precise answers to any
questions/problems arising
• France- credibility of a manager is lost if they
don’t show expertise
• Overall- how organisations are viewed in
terms of hierarchy, politics and authority
differs by national culture
 Management
• This can become problematical when national
cultures interact in terms of effectiveness
(cultural understanding/empathy/synergy?)
• Laurent 1983
• NB- This is not the only factor that management
across cultures can be compared/analysed-
power , influence, trust, task orientation and
issue of convergence or divergence
 French Managers
• ‘ Elitism in action’( Barsoux and Laurence
1994
• Hierarchy and authority:
• Lack of humour (joking around) humour not
meant to facilitate bonding between
managers and employees
• Managers don’t feel they can relax more as
they go up the hierarchy- authority isn’t
something to be taken lightly
 French Managers cont
• Appearances matter- French executives less likely to
relax their dress or posture- this is a sign of relaxation
or not getting down to business
• Personal life- French managers are less likely to
appreciate enquiries into their personal lives or
family or how they spent the weekend
• Empowerment found not to be well received in
French companies- this makes subordinates
responsible for decisions previously taken by their
bosses . MNCs have found this difficult in France.
 French management
• Trompenaars- Universalism/particularism-’The
French are the most particularist country in our
study- does this mean that France is lawless? NO-
Why?:
• French employees aspire not to the rules but to the
person in power ( their managers) and so respect the
ability of the manger to interpret the rules and
cascade them to subordinates- they are the most
skilled at bending without breaking the rules
(Trompenaars)
 Strategic decision making in contrasting
cultures (Warner, M)
• Different cultures make for contrasting decision
styles
• UK/Sweden comparison:
• Control in British context is based les on formal rules
and more on reciprocal, personal trust
• Sweden- Value placed on human rights and
democratic procedures exists in tension with vesting
of ultimate power in the hands of top managers
 Human Resource Management (HRM)

• Convergence or Divergence in HR ‘best

practice’?
• Some signs of this- but to what extent to HR
practices reflect
• Country of origin
• Country of operation
• A hybrid?
 HRM
• “ If we accept the view that HRM approaches
are cultural artefacts reflecting the basic
assumptions and values of the national culture
in which organisations are embedded (then)
International HRM becomes one of the most
challenging corporate tasks in multinational
organisations” HR Director of Honeywell,
Europe
• (Laurent 1986)
 HRM
• “ The role of the HR manager, the priest in whose
hands the company’s ‘ten commandments’ lie, is to
ensure the survival of its soul. Far from merely
providing a functional service determining salary
rises and fringe benefits, the hr function forms the
very heart of a company and its manager exists to
confirm the company’s particular values and try to
apply them in practice” (Michael Perez Apple
Computer, Europe from Evans P 1986 INSEAD case)
 HRM
• Convergence or Divergence?
• Overall strategy and policy can determine an
organisations aspirations in HR
• But cultural differences can mean the same
policies can have different effects in different
cultural contexts
• How to internationalise HRM?
• ‘..internationalising HRM may be too important
to leave to the HR department’ Honda
 Convergence or Divergence
• So to make or break local rules?
• Values core to the organisations’ global
reputation may mean breaking local practice-
could even distinguish the organisation locally
• On the other hand- pursuing a strong culture
for the sake of it? Out of touch with local
situations can alienate employees- impinging
on their freedom
 The Cultural Meaning of HRM
• US- HRM roots in psychology, prime concern
being worker motivation with focus on the
individual- analysing employee needs, job
analysis, reward systems and performance
management
• Europe- sociological roots-paying attention to
social systems, economic and political
contexts, and the nature of the relationships
between govts, unions and management
 Activities of Human Resource
Management
• Employee Resourcing-(Human Resource
Planning, Recruitment and Selection)
• Human Resource Development- ( Induction
(socialisation), Training, Development)
• Performance - (Managing
Performance/Appraisal; Employee Reward,
Pay )
 Activities of HRM - continued
• Involvement-( Diversity Management,
Employee Relations, Health, Safety, Employee
Welfare; Grievance and Discipline of
employees)
 Activities of IHRM
• Resourcing- mix of nationalities, experience
and language skills in senior and other key
positions, cross border business teams
• HRD- Development programmes mixing
nationalities, Cross cultural training, language
skills, IT applications
• Performance-Career ladders that reward
international experience, Pay that reflects
global and local issues
 Activities of IHRM cont
• Involvement- Employee Relations-
Recognition (or not) of trade unions, otherwise
assessing employee adverse reactions to
foreign/cultural infringements- distress,
frustration, alienation, demotivation
Overall strategically changing the mindset of the
culture of the company to reflect changing
from domestic to international environment
 HRM activities in a cross cultural
environment
• Socialisation (Induction)
• Learning the ‘company ropes’
• New members absorb the corporate culture
and become acquainted with the values and
behaviour expected of them
• These may not be so accepted cross culturally
 Disney
• Formal and informal socialisation procedures of a
large and well known (loved?) MNC
• Enrolled at University of Disneyland- 40 hour
programme: use of language, section/area of
work , appearance standards, dealing with
customer questions, levels of motivation
• Informally- where they work determines social
status, People are dismissed for ‘taking too long
breaks, not wearing part of the uniform, or
providing longer than usual rides’. Pranks can
occur but subject to scrutinisation/acceptability
 Socialisation
• Work and Private life-
• US- 7 am ‘power breakfasts’ or weekend
company picnics or Friday night ‘beer busts’
may not be so acceptable in say France or
Germany. Or taking on the boss in a tennis
competition – supposed to be equal
competition? Or wearing swim suits or shorts-
out of normal context?
 Socialisation
• Work and Private life cont
• Japan- young managers quickly learn that
working long hours, drinking with the boss at
karaoke bars and playing golf at weekends are
not entirely voluntary! And how about those
‘company songs’ etc – how transferrable were
they to the UK and USA?
• Alternatively – wearing of same corporate
uniform in Japanese UK sites were appreciated-
seen as reducing class distinction between
workers and managers
 Socialisation
• Mission cards issued to all staff and placed on
the walls of every office
• Senior staff issued with personal items with
company logos- Disney- ‘;mickey mouse’
watches
 Assessment of culture in Mergers and
Acquisitions (M&A’s)
• Cultural Due Diligence- to evaluate factors that
may influence the organisational fit, to
understand the future cultural dynamics as
the 2 organisations merge
• Prepare a plan of how cultural issues
addressed if merger occurs
 Assessment of culture in Mergers and
Acquisitions (M&A’s)
• Categories of audit include:
• Broad Leadership:
• Is the org result or process oriented?
• Where is the power?
• How are decisions made?
• How does the org manage information?
• What counts in being a valuable employee?
• Is the culture individual or team based?
 Assessment of culture in Mergers and
Acquisitions (M&A’s)
• Human capital:
• What unique skills do employees have?
• What is Target organisation’s talent?
• Background of management team?
• What happens if some mgt leave?
• Compensation philosophy?
• Reporting relationships?
• How are decisions made?
 Assessment of culture in Mergers and
Acquisitions (M&A’s)
• Early information/assessment helps to
pinpoint potential risk factors and areas to
help overcome potential problems