Tutor : Ms.

Thanh Hang Tut : 3FB2010 Group : 15 Nguyen Thi Phuong Mai Thu Trang Nong Thi Thuy Duong

Contents
Overview and problem
Coca-cola Company - History

- Problem
Recommendations - For Coca-cola - For Vietnamese business

Problem
How might an international firm trying to adapt HRM practices to the local culture produce worse result than it would produce be exporting HRM practices from the home office?

HRM policies in a Global Context

National Culture/ Organizational Characteristics/ HRM Practice Culture is important to HRM practices Simply transferring abroad HRM Practices that are based guarantee a failure There is a need for sophisticated HRM system that can be adapted to variety of cultural conditions The more an HRM practice contradicts the prevailing social norms, the more likely it is to fail

HRM Policies in a Global Context

1. Power distance This refers to the degree of inequality that exists and is accepted among people with and without power.
Ex: high PD: Malaysia(104), Philippines(94) low PD: New Zealand(22), Ireland(28)

2. Individualism/Collectivism This refers to the strength of the ties people have to others within the community.
Ex: Individualism: Netherlands(80) United States(91) Collectivism: Indonesia(14), China(20)

3. Uncertainty Avoidance This relates to the degree of anxiety society members feel when in uncertain or unknown situations.
Ex: high UA: Japan(92), Italy(75), Germany(65) low UA: Singapore (8), Denmark(23)

HRM Policies in a Global Context

4. Masculinity/Femininity This refers to how much a society sticks with, and values, traditional male and female roles.
Ex: Masculinity: Germany(66), United State(62) Femininity: Sweden(5), Netherlands(14)

5. Long term/short term orientation extent to which values are oriented toward the future( saving, persistence) as opposed to the past or present (respect for tradition, fulfilling social obligations)
Ex: long-term operation: Japan(80), China(118) short-term operation: USA(29), Philipines(19)

Adapting HRM practices to local culture

Advantages: Avoid culture conflict Make local emplyees get on well their work easily Diversify HRM practices of international firms in different countries Disadvantages: Local culture ><organizational values

Exporting HRM practices from home office

Advantages reduce needed time to adapt HRM policies suitable with local culture Reduce cost to change HRM systems to adapt to local culture brings new styles in training and working in host country Disadvantages Culture shock

Coca-cola Companys History

1892: Coca- cola was established in Georgia , US

Coca cola was introduced firstly in VN in 1960

Coca- cola company in VN officially went into

business in 1994

Problem of adapting to VN
Recruitment : the most numbers of job position are

sale employees and worker in factories Training : in Vietnam, they just focus training on the higher level manager Appraising performance : They just appraise performance of some important position in the company

Problem of adapting to VN
Union labor: they didnt active effective on collective

bargaining wages, benefits, and working conditions for their membership Power distance : large differential between higher and lower-level job. Top manager : They need a efficient, model top manager

Recommendations for Coca cola

Changing perceptions of multinational companies in

the gray matter and skills of labors Localized to the senior management team Leaders must have visions and business strategies to create differences to dominate the market share It must have a very strong capital to make that differences

Recommendations for Coca cola

partners need to support Coca-cola in the marketing

communication activities and training of personnel Building and developing a brand that is not decided and depended on the leaders themselves Develop a strategy closely match its efficiency and feasibility

Recommendations for VN business

HR practices need to be adapted to diverse cultural,

economic, political and legal environment Putting in place a sensible set of HRM policies and practices that get in to the root of the problem Judging the local norms or implementing practices correctly _Managers should be careful not to be guided by stereotypes

Recommendations for VN bussiness

Cultures change over time, therefore companies need

to learn about cultures of countries in which they want to do business Providing developmental activities Providing HR practices such as selection and training programs Preparing to deal with the political forces that they might face