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CROSS - CULTURAL HUMAN RESOURCE MANAGEMENT

Introduction

MODULE OUTCOMES
To be able to

Diagnose Complex Management and Organisational problems relating to the management of people across different cultures Generate & Evaluate alternative courses of action to address such problems Produce and justify action plans for International HRM

LEARNING OUTCOMES

Significance and origin of HRM Functions and basic concepts of HRM Definitions and theories of HRM, Key terms Organisational Culture and how it evolves Culture Specific nature of HRM and Culture Frameworks Contextual factors affecting HRM

Change Management
CIPD Key issues in managing Globalisation

MANAGING PEOPLE FOR?


Results Organisational effectiveness Achievement of specified / quantifiable goals Employee Satisfaction (Stakeholder perspective)

Measures can be Quantitative (costs, turnover, absenteeism, grievances, service levels, etc) Or Qualitative (employee satisfaction, managing change, organisational culture)

PERSONNEL MANAGEMENT
Tyson & Fell (1986) Personnel Management has its roots in Four Traditions

The Welfare Tradition The Industrial Relations Tradition The control of labour Tradition The professional Tradition

HRM FUNCTIONS
Activity: List the roles and responsibilities of the HR Function in an organisation

HR FUNCTION
Organisational Structure and Design

Planning and Resourcing


Recruitment
Selection Retention Exit management

Organisational Development Job role design / definition Working pattern flexi time

Performance Management

Reward Management

Pay and Benefits Performance pay systems

Objective setting

Monitoring and appraisal

Non Financial rewards (recognition)

HR FUNCTION
Human Resource Development

Employee Relations

Training PDP Career Management

Managing expectations and conflict


Communication

Health and safety Welfare

Services

HR policies and procedures Ensuring compliance

Maintaining Information system

DEVELOPMENT OF HR DISCIPLINE
F.W. Taylor (1911) The Principles of Scientific Management

Henry Ford (1914) Five Dollar Day


Hawthorne Studies at Western Electric Company Plant in Chicago (1920s) led to An appreciation of the fundamental importance of the workers attitude to the job in determining performance

HARD AND SOFT HRM


Storey ( 1989) has distinguished between Hard and Soft forms of HRM, typified by the Michighan and Harvard Models respectively. Hard - Focuses on the resource side (costs, head counts) Soft stresses human aspect

MC GREGORS THEORY X AND Y

DEFINITIONS OF HUMAN RESOURCE MANAGEMENT

Human Resource Management involves all Management decisions and actions that effect the relationship between the organisation and employees - its employees (Beer et al., 1984) Perhaps it is best to regard HRM as simply a notion of how people can best be managed in the interests of the organisation (Armstrong, 1994) HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce , using an integrated array of cultural, structural and personnel techniques (Storey, 2001)

CONVERGENCE VS DIVERGENCE

Attempt to Harmonise Global sharing of technical knowhow Standardisation of jobs and evaluation techniques Best Practice Approach

Significant differences exist which cannot be ignored


Cultural Legal

Structural
Ideological Economical

Best Fit Approach

STAKEHOLDERS
Groups of people or organisations that are directly affected by the actions of a firm

THE HARVARD FRAMEWORK

WHAT IS HR BUSINESS PARTNERING?

ORGANISATIONAL CULTURE

NATIONAL CULTURE
Hofstede (1980) Collective Programming of the mind based on a broad tendency to prefer certain states of affairs over others Tayeb (1988) Historically evolved values, attitudes and meanings which are learned and shared by the members of a given community, and which influence their material and non material way of life

CONTEXTUAL FACTORS AFFECTING HRM POLICIES AND PRACTICES

ORGANISATIONAL CULTURE AND CLIMATE

Culture is one of the less tangible features of an organisation and carried in the minds of organisational members. While it is hard to define, it consists of a deeply ingrained set of values.

It can be thought of as a layered phenomenon 1)basic assumptions at its core 2)values arising out of the basic assumptions 3) visible expression (mostly difficult to interpret)
Organisational Culture usually contains elements of the culture of the country in which an organisation is located

CULTURAL FRAMEWORKS
The Hofstede Model (1984,1991) - Power Distance - Uncertainty Avoidance - Individualism - Masculinity The Trompenaars Model (1997) 7 Key Dimensions

WHAT ASPECT OF HRM IS MORE SUSCEPTIBLE TO CULTURAL INFLUENCES SOFT OR HARD?

SOFT ASPECTS
Management style: Participative Consultative Paternalistic Autocratic Authority Structure: Decentralised Centralised Organisational Structure: Hierarchical Network
Leadership Style: Task Oriented Employee Oriented Employee Relations With Company: Emotional Contractual

CONTEXTUAL FACTORS DISCUSS & LIST

CONTEXTUAL FACTORS
Institutions
Institutions
Labour laws Trade Unions Labour Market

Dynamic Business Environment


Competition Technology Change

Industrial Sector
Regulations & Standards Labour or skill requirements

National Culture
Norms of Behaviours Socialisation Process Influence of Pressure Groups

National HRM Policies & Practices

Contingent variables
Age, Life Cycle stage, Different stakeholders interest

PSYCHOLOGICAL CONTRACT

Schein (1980) defines Psychological contract as an unwritten set of expectations operating at all times between every member of an organisation and various others in that organisation.

Psychological contract has been defined by D.Guest (2001)as a reciprocal but unarticulated set of expectations between employers and employees.
The contract is implicit and dynamic.

CHARACTERISTICS OF IHRM
Torrington (1994) believes that International Personnel Management is best defined by reference to the following 7 Cs Cosmopolitan Culture Compensation Communication Consultancy Competence Coordination

CHANGE - FORCE FIELD ANALYSIS

CHANGE - LEWINS MODEL

Unfreeze

Change

Refreeze

CHARTERED INSTITUTE OF PERSONNEL DEVELOPMENT


Welfare Workers Association (1913) Industrial Welfare Workers (1924) Institute of Labour Management (1931) Institute of Personnel Management (1946)

Institute of Personnel Management and Institute of Training and Development merged to become Institute of Personnel and Development (1994) 01 July 2000 - Chartered Institute of Personnel and Development

CIPD PODCAST
Research into the future of HR in Europe conducted by the Boston Consulting Group in association with the CIPD and the European Association for Personnel Management, has highlighted globalisation and its consequences as a priority for the HR profession.

CIPD PODCAST
Three priorities emerged around the issue of globalisation
A.

Challenges of managing international teams Creating a strong enough corporate culture to cross national boundaries

B.

C.

Increasing diversity in the workforce

RECAP

Significance and origin of HRM Definitions and theories of HRM, Key terms Organisational Culture and how it evolves

Culture Specific nature of HRM and Culture Frameworks


Contextual factors affecting HRM Change Management CIPD Key issues in managing Globalisation

CASE STUDY