The paper “ Do Cultural Differences Influence Human Resources Management Practices? ” is an engrossing example of a literature review on human resources. With globalization taking place so fast in the business platform people of different cultures are now forced to interact more often than before. People no longer do their work and live in an inward-oriented market; they are presently part of a worldwide market with competition arising from roughly every continent. Gelfand (2000, p. 30) posits that the business form of interaction has compelled multinational companies to re-think their strategies on how employees deal with customers to satisfy their ever-changing demands.
Because human resource practice is a core component of the organization, managers try to put it among the front agendas with reference to customer satisfaction. In a nutshell, if the human resource company is not standard and consistent with cross-cultural issues, it will very difficult for such a company to satisfy the needs of its diverse customers (Awasthi, Chow & Wu 2001, p. 292). Based on this realization, this essay believes that cultural difference influences HRM practices. The essay will use Hofstede's cultural dimension to show that cultural differences influence HRM practices. Fields, Chan & Akhtar (2000, p. 265) explain human resource management as “ a set of policies that are formulated to enhance the organizational cooperation, employee’ s flexibility, commitment and the qualities of work” .
Inherent to the idea of cultural influence the view that societies are regarded to differ with reference to the structure which their organizations and institutions are made of, and that these differences reflect their unique traditions, attitudes, values and historical undertakings. As such, Hofstede (2000) defined culture as the “ crystallization of history in the feeling, thinking and acting like the present generation” so as to allow integration.
However, in the actual sense culture means values, behavior, attitude, norms, and beliefs. Nyambegera, Sparrow & Daniels (2000, p. 640) argue that an organization’ s Human Resource Management practices are dictated by national, international and organizational cultures. According to Aycan, et al. (2000, p. 200) research demonstrates that diverse cultural values and identities can mediate the manner in which workforce in the organizations value, perceive and respond to things like SHRM practices and the amount of time and dedication they put in the organization and their jobs.
MNCs have to be responsive to the existing attitudes and values in that particular country. For a manager, understanding the reality of cultural values ought to be a practical question, not just a priority assumption. The insinuation is that the human resource department accepts human resource functions as critical in the creation of the organization’ s strategies including in the adoption of these strategies by means of HR practices (Budhwar & Katou, 2005). Issues concerning a cross-national exchange of HRM practices, individual, individualism at work, and organizational change, are more likely to be influenced by the society they grew up in.
Just sustaining diverse workforce is no longer satisfactory, Aycan et al. (2000, p. 203) claim that, for a business to do well in the current challenging economy, it must not simply satisfy the demands of a complicated market, it ought to respect the diverse cultures and ideas. In organizational viewpoint, diversity in culture normally means a number of human resources, customers in reference to educational background, income, sexual orientation, geographic location, gender, physical qualities and abilities, suppliers, (Budhwar & Katou, 2005).