5.4.

International Human Resource Management (IHRM)

IHRM is implemented according to cultural differences following Hofstede’s model to reduce

cultural shocks between the nation where the headquarter is based and the nation of entry.
Cultural differences between Brazil and Vietnam based on Hofstede’s model are show below.

Power Distance Index (PDI) Vietnam High

Brazil High

Individualism vs Collectivism Vietnam Collectivisim

Brazil Collectivisim

Masculinity vs Feminine Vietnam Masculinity

Brazil Equality

Uncertainty Avoidance Index Vietnam Low

Brazil High

Long Term Orientation versus Vietnam Long term orientation

Short Term Orientation
Brazil Short Term Orientation

Indulgence versus Restraint Vietnam Restraint

Brazil Indulgence

Table 1. Vietnam’s and Brazil’s cultures according to Hofstede’s model (Koslowski, 2021;
Motta & Gomes, 2022)

In overal, Brazil’s and Vietnam’s cultures are different in terms of Masculinity vs Feminine,
Uncertainty Avoidance Index, Long Term Orientation versus Short Term Orientation, and
Indulgence versus Restraint. With high differences, IHRM approaches should be polycentric
approach for top management positions and ethnocentric approach for low management
positions to avoid cultural misunderstandings among employees of the two countries.
Meanwhile, permanent employees are recruited based on the candidates’ suitability and
qualifications without being restricted to any approach.

Polycentric approach means that foreign subsidiaries of a country hire workers from the country
they are operating in rather than from where the parent company is based. This can help
subsidiaries operate in a specific community and comprehend local requirements. This approach
is implemented for a long term, with the first two years used for hiring employees in Brazil. The
strategy has lower costs for hiring and training employees, as well as less problems with
communication and transition since employees are recruited from the same region, while cultural
misunderstandings among employees are eliminated. Besides, the top management positions
occupied by Brazil employees allow making appropriate decisions in the Brazil’s market since
they are familiar with it (Tiwari, 2013). With this approach, Trung Nguyen Legend should
carefully select which top management positions should be occupied by Brazilian staff while
other positions should be for Vietnamese staff to balance employees of the twon nations.

Ethnocentric approach means that natives of a company's home country are given significant
positions both domestically and abroad, which is also expected to last 2 years. That is,
Vietnamese staff will be in charge of key management positions in companies operating in
Brazil. This approach helps to overcome lack of qualified and experienced managers in the host
nation and transfer core competencies of the parent company to the subsidiaries (Azungah et al.,
2020). However, it should be noted that this approach is to recruit employees for low
management positions. These managers serve as a bridge to connect permanent employees and
top managers to unify cultures of the organization and transfer knowledge of the parent
company. With this approach, Trung Nguyen Legend should select Vietnamese staff in the
parent company who are qualified and experienced enough, as well as can base in Brazil for
convenience.

All of the employees should undergo a period of training before becoming officially members of
the company. The process is predicted to take 6 months to ensure all employees understand
cultural differences between the two nations and the organizational culture.

Motta, LAS & Gomes, J (2022), “The Characteristics from the National Culture and its Influence
at the Organizational Subcultures: An Analysis from Brazilian Public Management", Public
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September 2023,
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Azungah, T, Hutchings, K, & Michailova, S (2020), “Ethnocentric HRM practices: evidence

from Western MNEs in Ghana", International Journal of Emerging Markets, vol. 15 no. 5, pp.
829-848. accessed 5 September 2023,
https://www.researchgate.net/publication/340005126_Ethnocentric_HRM_practices_evidence_fr
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Tiwari, N (2013), “Managing Human Resources in International Organizations”, Global Journal

of Management and Business Studies, Vol. 3, no. 4, pp. 355-360, accessed 5 September 2023,
https://www.ripublication.com/gjmbs_spl/gjmbsv3n4_02.pdf

Koslowski, B (2021), “Hofstede: A Peek into Vietnam’s Business Culture”, LinkedIn, accessed 5
September 2023, https://www.linkedin.com/pulse/hofstede-peek-vietnams-business-culture-bj
%C3%B6rn-koslowski/