Cross cultural management 3e by cullen ch11

Learning Objectives• Understanding how the national context affects HRM practices • Identify how recruitment and selection practices differ in various national contexts • Identify possib

Chapter 11

HRM in the Local Context:

Knowing When and How to Adapt

Learning Objectives

• Understanding how the national context affects HRM practices

• Identify how recruitment and selection practices differ

in various national contexts

• Identify possible host adaptations in recruitment and

selection practices

• Understanding how the national context affects HRM

practices

• Identify how recruitment and selection practices differ

in various national contexts

• Identify possible host adaptations in recruitment and

selection practices

Learning Objectives

• Identify how training and development techniques are

used in different countries

• Identify sources of high-quality workers in different

nations

• Understand how training must be adapted to host

country workers

• Identify how performance evaluation and compensation

• Identify how training and development techniques are

used in different countries

• Identify sources of high-quality workers in different

Learning Objectives

• Identify possible host country adaptations in

performance evaluation and compensation practices

for a multinational company

• Understand how labor costs vary

• Have an appreciation of how the national context and historical conditions affect the relationship of

management and labor

• Identify possible host country adaptations in

performance evaluation and compensation practices

for a multinational company

• Understand how labor costs vary

• Have an appreciation of how the national context and historical conditions affect the relationship of

management and labor

Why Do Nations Differ in HRM?

• Because of the national context

• National culture and social institutions influence how managers make decisions regarding strategies

• Countries vary widely with regards to social institutions and national culture

• Multinationals must select and implement practices that meet national context

• Because of the national context

• National culture and social institutions influence how managers make decisions regarding strategies

• Countries vary widely with regards to social institutions and national culture

• Multinationals must select and implement practices that meet national context

Exhibit 11.1: How the National Context

Leads to National Differences in Local

HRM Practices

Why Do Nations Differ in HRM?

• Resource pool: all the human and physical resources available in a country

• Both from natural and induced factor conditions

• Include quality of labor, availability of scientific

laboratories

• Resource pool: all the human and physical resources

available in a country

• Both from natural and induced factor conditions

• Include quality of labor, availability of scientific

laboratories

Key Factors that Influence the Resource Pool

• The quality, quantity, and accessibility of raw material

• The quantity, quality, and cost of personnel available

• The scientific, technical, and market-related knowledge available to firms

• The quality, quantity, and accessibility of raw material

• The quantity, quality, and cost of personnel available

• The scientific, technical, and market-related knowledge available to firms

Resource Pool

• The cost and amount of capital available to firms for

operations and expansion

• The type, quality, and costs of supporting institutions

such as the systems of communication, education, and transportation

• The cost and amount of capital available to firms for

operations and expansion

• The type, quality, and costs of supporting institutions

such as the systems of communication, education, and transportation

Why Do Nations Differ in HRM?

• Natural factor conditions: national resources that occur naturally

• E.g., abundant water supply

• Induced-factor conditions: national resources created

by a nation

• E.g., superior educational system

• Natural factor conditions: national resources that occur naturally

• E.g., abundant water supply

• Induced-factor conditions: national resources created

by a nation

• E.g., superior educational system

Characteristics of the National Context That Affect HRM

• Education and training of the labor pool

• Laws and cultural expectations for selection practices

• Types of jobs favored by applicants

• Laws and cultural expectations regarding fair wages

and promotion criteria

• Laws and traditions regarding labor practices

• Education and training of the labor pool

• Laws and cultural expectations for selection practices

• Types of jobs favored by applicants

• Laws and cultural expectations regarding fair wages

and promotion criteria

• Laws and traditions regarding labor practices

Recruitment Strategies

• Walk-ins or unsolicited applications

• Newspaper or Internet advertisement

• Company Web site job posting

• Internal job postings

• Public and private personnel agencies

• Placement services of educational institutions

• Current employee recommendations

• Walk-ins or unsolicited applications

• Newspaper or Internet advertisement

• Company Web site job posting

• Internal job postings

• Public and private personnel agencies

• Placement services of educational institutions

• Current employee recommendations

Exhibit 11.2: Steps in the

Recruiting Process

Recruitment in the U.S.

• U.S managers tend to see newspapers as one of the most effective recruitment methods

• Fear that recruitment by personal contacts may result

in bias against some groups

• U.S value open and public advertisements as a

reflection of individualistic culture

• U.S managers tend to see newspapers as one of the most effective recruitment methods

• Fear that recruitment by personal contacts may result

in bias against some groups

• U.S value open and public advertisements as a

reflection of individualistic culture

Exhibit 11.3: Most Effective

Recruiting Sources for U.S

Companies

Recruitment in Korea

• Backdoor recruitment: prospective employees are

friends or relatives of those already employed

• Managers are recruited from prestigious universities

• Backdoor recruitment: prospective employees are

friends or relatives of those already employed

• Managers are recruited from prestigious universities

Recruitment Around the World

• Individuals around the world have preferred way to find jobs

• International Social Survey Program data was

analyzed

• Looking for jobs through public vs private agencies

• Individuals in former communist and socialist

societies were more likely to rely on public agencies

• Individuals around the world have preferred way to find jobs

• International Social Survey Program data was

analyzed

• Looking for jobs through public vs private agencies

• Individuals in former communist and socialist

societies were more likely to rely on public agencies

Recruitment Around the World (cont.)

• Advertising in newspapers and responding to

newspaper ads

• Both very public forms of recruitment

• Individualistic societies have higher preference for

such forms

• Apply directly versus asking friends/relatives for job

• Individualistic and high femininity societies more

likely to favor direct application

• Socialist societies rely on asking friends/relatives

• Advertising in newspapers and responding to

newspaper ads

• Both very public forms of recruitment

• Individualistic societies have higher preference for

such forms

• Apply directly versus asking friends/relatives for job

• Individualistic and high femininity societies more

likely to favor direct application

• Socialist societies rely on asking friends/relatives

Exhibit 11.4: Preferred Ways to Look for a New Job—Public vs Private Agency

Exhibit 11.5: Preferred Ways

to Look for a New Job

Exhibit 11.6: Preferred Ways

to Look for a New Job

Selection in the U.S.

• Job qualifications

• Match skills and job requirements

• Individual achievements

• Prohibitions against nepotism—the hiring of relatives

• Forbidding managers to supervise family members

• Job qualifications

• Match skills and job requirements

• Individual achievements

• Prohibitions against nepotism—the hiring of relatives

• Forbidding managers to supervise family members

Exhibit 11.7: Typical Steps in

U.S Personnel Selection

Selection in Collectivist Cultures

• Based on the in-group

• Preference for family

• Value potential trustworthiness, reliability, and loyalty over performance-related background

• High school and university ties substitute for family

membership

• Based on the in-group

• Preference for family

• Value potential trustworthiness, reliability, and loyalty

over performance-related background

• High school and university ties substitute for family

membership

Implications for the Multinational: Recruitment and Selection

• Managers must follow local norms to get best workers

• Often a tradeoff between home practices and costs of following local traditions

• Managers must follow local norms to get best workers

• Often a tradeoff between home practices and costs of following local traditions

Training and Development

• Need for training and development varies by country

• Differences in training and development due to

• Differences in educational systems

• Values regarding educational credentials

• Cultural values regarding other personnel practices

• Need for training and development varies by country

• Differences in training and development due to

• Differences in educational systems

• Values regarding educational credentials

• Cultural values regarding other personnel practices

Exhibit 11.8: Training Systems

around the World

Exhibit 11.9: Key Specific Training

and Development Characteristics

of Selected Countries

Exhibit 11.9: Key Specific Training

and Development Characteristics

of Selected Countries

Exhibit 11.9: Key Specific Training

and Development Characteristics

of Selected Countries

Exhibit 11.9: Key Specific Training

and Development Characteristics

of Selected Countries

Exhibit 11.9: Key Specific Training

and Development Characteristics

of Selected Countries

Training and Development in the U.S.

• Companies with over 100 employees invest more than

$60 billion in training costs

• Management development and computer skills are the most popular

• There is growing pressure for training as the U.S shifts

to the service sectors

• Companies with over 100 employees invest more than

$60 billion in training costs

• Management development and computer skills are the most popular

• There is growing pressure for training as the U.S shifts

to the service sectors

Exhibit 11.10: Skills Taught by

U.S Organization

Training and Development in Germany

• Two major forms of vocational education

• General and specialized vocational schools and

professional and technical colleges

• Dual system: combination of in-house apprenticeship training with part-time vocational-school training, and leads to a skilled certificate

• Meister: a master technician

• Two major forms of vocational education

• General and specialized vocational schools and

professional and technical colleges

• Dual system: combination of in-house apprenticeship

training with part-time vocational-school training, and

leads to a skilled certificate

• Meister: a master technician

German Dual System

• Stems from collaboration among employers, unions,

and the state

• Costs shared between companies and state

• Employers have obligation to release employees for

training

• Stems from collaboration among employers, unions,

and the state

• Costs shared between companies and state

• Employers have obligation to release employees for

training

Exhibit 11.11: Skilled Worker

Training in Germany

Exhibit 11.12: Germany’s

Apprenticeship Program

under Pressure

Training and Development in the U.S.

• Senior level managers often identify managerial

potential

• Appraisals of managerial readiness based on

• Assessment centers

• Mentoring

• “Fast track” careers

• Senior level managers often identify managerial

potential

• Appraisals of managerial readiness based on

• Assessment centers

• Mentoring

• “Fast track” careers

• Remains the responsibility of the individual

Training and Development in Japan

• Permanent employment

• Recruitment directly from universities

• Join the company as a group

• Selected on personal qualities that fit the corporate

• Recruitment directly from universities

• Join the company as a group

• Selected on personal qualities that fit the corporate

Training and Development in Japan

• Shifting social institutions: pressures for change

• Asahi ties promotions to evaluations

• Matsushita uses merit pay for managers

• Honda is phasing out seniority

• Shifting social institutions: pressures for change

• Asahi ties promotions to evaluations

• Matsushita uses merit pay for managers

• Honda is phasing out seniority

Implications for the Multinational: Training and Development

• Examine feasibility of exporting training

• IHRM orientation affects training needs of local

managers

• Locations advantages

• Examine feasibility of exporting training

• IHRM orientation affects training needs of local

managers

• Locations advantages

Exhibit 11.13: Workers of the

Future: Student Math and Science

Scores from Selected Countries

Performance Appraisal

• Identifying people to reward, promote, demote,

develop and improve, retain, or fire

• Not everyone can climb the corporate ladder

• Need to assess how employees perform

• Identifying people to reward, promote, demote,

develop and improve, retain, or fire

• Not everyone can climb the corporate ladder

• Need to assess how employees perform

U.S Performance Appraisal

• U.S legal requirements regulate performance

evaluation practices to ensure their fairness

• Performance evaluations must relate clearly to the job and performance

• Performance standards must be provided in writing

• Supervisors must be able to measure the behaviors

they rate

• U.S legal requirements regulate performance

evaluation practices to ensure their fairness

• Performance evaluations must relate clearly to the job and performance

• Performance standards must be provided in writing

• Supervisors must be able to measure the behaviors

they rate

U.S Performance Appraisal (cont.)

• Supervisors must be trained to use evaluation

measures

• Supervisors and subordinates must discuss appraisals openly

• Appeals procedures must be in place

• Supervisors must be trained to use evaluation

Performance Appraisal in Collectivist Cultures

• Managers work indirectly to sanction poor performance

• Often avoid direct performance appraisal feedback

• Managers work indirectly to sanction poor performance

• Often avoid direct performance appraisal feedback

Exhibit 11.14: Cross-National

Differences in Purposes of

Performance Appraisals

• Wages and salaries, incentives such as bonuses, and benefits such as retirement contributions

• Wide variations on how to compensate workers

• Wages and salaries, incentives such as bonuses, and benefits such as retirement contributions

• Wide variations on how to compensate workers

Compensation in the U.S.

• Wages and salaries differ based on two major factors

• External: include local and national wage rates,

government legislation, and collective bargaining

• Internal: include the importance of the job to the

organization, its ability to pay, and the employee’s

relative worth to the business

• Wages and salaries differ based on two major factors

• External: include local and national wage rates,

government legislation, and collective bargaining

• Internal: include the importance of the job to the

organization, its ability to pay, and the employee’s

relative worth to the business