Does National Culture Always Matter in International Human Resource Management - Assignment Example

Does national culture always matter in International Human Resource Management? Introduction In the contemporary world, businesses have randomly shifted in pursuit to establish their own uniqueness and promote their own distinct competitive edge. Business organizations in domestic and international business environments are, driven by ease in accessibility, effective and efficient utilization of available resources. Among resources that underpin the organization’s success are the material resources such as factories and equipments, financial resources such as debts, monetary and funding support, and business capital resources including organization structures, plans, management and co-ordination, and human resource. More recently, the more focus has been directed to effective and proper management of the human resource owing to its reliability and value to modern day business organization. This is because, human and business resources constitute the culture of an organization based on beliefs, values, perceptions and behavior. The human resource dictates the competitive edge of a company and their ability to induce innovativeness and product and service differentiation, which is particularly hard to do with increased consumer awareness, stiff market competition, and greatly reduced available resources (Harzing & Ruysseveldt, 2004). Due to increased adoption of technology and development of efficient and competent physical and business infrastructures, more business have gone global to take advantage of the increased mass market on the global market platform. This necessitates the need to be able to assimilate and amalgamate national culture and international human resource management in order to promote cohesiveness, accountability, adoption and increased business production and performance (Martin-de-Castro, et al., 2006). This report will candidly discuses whether national culture always matter in international human resource management. In addition, the report will seek to illustrate the discussion with reference to selection and reward management as the human resource management functions. International human resource management Does national culture always matter in International Human Resource Management? Yes it does. International human resource management refers to the selecting and hiring of the best candidate as an employee, promoting initiatives that helps the skills and knowledge of the personal and professional aspects of the employees grow (Paauwe, 2009). Moreover, exploiting the potential of the labor force, effectively managing them, offering appropriate remunerations and compensations for labor services offered in a global context. In addition ensuring the business objectives and goals are, aligned to existing cultures of the surrounding community, the external and internal environment of the business organization such as customers, investors, suppliers, workers, shareholders, management, and government regulations and policies in foreign market regions (Fahy, 2000). The need for international human resource has been necessitated by a need for a diverse workforce to help increase capacity of production, promote innovation and creativity, produce and deliver quality products and services to customers in good time and effectively satisfy the rising needs and expectations of the mass/ global market. Employees in international organizations, offer the best of their skills, knowledge, abilities and experiences when supported by the structures that effectual international human resource management offers (Beaumont, 1993). When dealing with both domestic and international market environments, human resource managers in modern day business environments encounter rapidly shifting market and operation paradigms. This is in respect to shifting labor force demographics, culture diversity, inadequate supply of labor, creating symmetry between personal and professional lives of the employees, advanced technological frameworks, increased cutthroat market competition, increased need for professional work training and acquisition of education contents that meets international standards (Dowling, et al., 2008). Moreover, the persistent lack of cohesion and disjointed relations among workers and along the diverse organization cultures driven by discrimination and prejudice practices that impair fair and objective judgment when hiring, training, offering job promotions, assigning duties, rewarding performance and during monitoring and supervising work practices. International human resource management moves in to align individual, group and societal cultures with set corporate and business cultures (Legge, 2004). National culture National culture refers to the profoundly rooted values and morals in respect to what a nation perceives to be rational or irrational, good or evil, secure or harmful, and ordinary and extraordinary (Sparrow, 2009). By understanding the national culture of a nation in which an organization or a business operates, the international human resource manager is able to comprehend them and in so doing know the best strategies to use in negotiating bids and contracts. Moreover, in managing its internal and external environments, know the right methods of selecting and training the employees to achieve maximum achievements. National cultures vary from one society to the other (Marshall, 1995). There are three dimensions to national culture namely Trompenaars and Hofstede dimensions and High and low context frameworks (Scullion, et al., 2007). Dimensions of national culture National culture have various variables including power distance, which illustrates the level of social inequality perceived by society in terms of wealth, investments, and delegation of authority and power. Individualism and collectivism describes the level within a society to operate and function independently or as a group. Uncertainty avoidance indicates the level of necessity to avoid future. Uncertainties and preference for having laid down guidelines and rules or a society that encourage taking risks and masculinity and femininity dimension which entails the partition of duties and values based on gender formation (Johnson & Turner, 2009). Being competitive, domineering, assertive, aggressive and overly ambitious is, seen as masculine value whilst female values are associated with care, unity, and submissiveness and emotional. Finally, there is the long term and short-term orientation, which illustrates the approach towards time management. A society that has a long-term based culture, encourage practical virtues directed to achieving future rewards including saving, being unrelenting, and adjusting to changing situations (Johnson & Turner, 2009). On the other hand, a society that has a short term oriented culture, promotes virtues associated with the now and the history for example national pride, respect of cultural norms and beliefs and discharging one’s social duties. International human resource management and national culture For international human resource management to be a success, it is imperative to understand that organization culture is dependent on national culture and not vice versa (Beaumont, 1993). Therefore, national culture always matter in international human resource management. What an international human resource manager should know and implement when managing their human resource and making it more effective, productive and promoting job satisfaction. Moreover, developing and motivating employees and minimizing employee turnover, is to establish an organization culture that not only initiates high performance and meet the goals and objectives of the organization, but also is, based and corresponds with local understanding of corporate and business cultures to their cultural values and traditions (King & Zeithaml, 2001). According to previous studies done about the relationship between national culture and international human resource management, the results have categorically suggested that national culture is a fundamental aspect in understanding behavior patterns, morale, and effectiveness of employees. This means majority of cases in IHRM are, based on solving the conflict between the two concepts. An organization that is able to competently, align their organization cultures and corporate priorities and processes with the existing national culture register increased ease in market entry, market penetration, diffusion and adoption of their products and services than organizations that do not (Tracey, 1994). An employee can be, taught to adapt to work and business priorities and processes. What is more, they can be, influenced to emulate the behavior patterns of the leaders in the top-level management structures. Nevertheless, business priorities and work processes of an organization that defy or contradict the deeply rooted national culture and beliefs held by the workers, the workers will do away with the business priorities and work processes in preferences for their national culture. However, organization cultures and corporate priorities and practices may not necessarily comply with the national culture and still succeeds. This is especially so if the outcomes of the organization and business cultures and priorities developed and implemented, surpasses the expectations of the individual, group or society, in terms of increased well being of all, improved efficiency, enhanced effectiveness and value. This will allow an embrace to the corporate culture and integration of it into the national culture. Harmonizing the national culture in the selecting and training of employees in IHRM The importance of culture in promoting effectiveness and efficiency of international human resource managers cannot be, over emphasized. Differences in national cultures are, determined by social formation, political systems, educational systems, religion, values, language, and economic growth (Dash & Aswathappa. 2007). Therefore, businesses of different national origins or transacting in cultures different from their own perceive important things differently, thus influencing on the development and implementation of their organization structures, policies and guidelines, communication behavior patterns, and management of its human resource. Among functions of IHRM includes training, motivating, managing human resources, promoting teamwork, employee development through training, rewarding and appreciating performance and recruiting and selection of employees (Howes & Tah, 2003). Implementation of human resource functions of selecting and hiring employees and rewarding them vary in different societies. However, to close the gap in the power distance when selecting the right candidate for the job, it is fundamental to acknowledge that although no society is equal, some of the societies are more unequal than other societies (Ulrich, 1996). When an IHR manager implements the recruiting and selection processes, the manager needs to ensure issues on equal access to employment opportunities are, offered to both male and females depending on particular national culture. For example, there are societies that perceive jobs in customer service, hospitality jobs and catering, as jobs meant for women, and therefore, hiring a man for such a position may subject him to alienation by male colleagues, hence low morale from the male employee and increased job satisfaction. There are national cultures that foster allocation of top-level jobs and demanding positions to be a forte for a male employee. Therefore, selecting a female recruit for such a position may initiate disintegrated relations and harassment between the two genders, which interferes with flow of work, and performance. The process of recruiting and selecting the best candidate to fill in a specific job is one that has randomly change since selecting the best candidate means improving production and quality, being able to retain them and minimizing costs of rehiring due to employee turnover. Taking risks, being creative and innovative about unfamiliar and uncertain is part of succeeding in modern markets and improving one’s competitive edge (Adler & Gundersen, 2008). Therefore, an organization which bases its success on such, needs to recruit and select a candidate from a national culture or society that would not be intimidated by uncertain future and easily adapt to changes as discussed by Hofstede’s long term and short-term orientation national culture dimension (Schober, 2008). This is because employing an employee who perceives maintaining the status quo and complying with laid-down procedures will create a disharmony and anxiety for the employee. To ensure harmony between national culture and international human resource management practice in recruiting and selection, IHR managers should conduct market and recruitment survey to analyze recruitment trends, needs and expectations. This will lead to acquiring an extensive access to qualified labor supply, decrease job dissatisfaction and be able to retain the best employee, register a boost in talents, acquire efficient and competent staff and have competitive person- business fit (Hendry, 1993). Regarding the reward management as an international human resource management function, it entails appreciating good performance, applauding hard work and allowing the labor force share in the success and high performance of the organization. Moreover, rewards helps in improving the economic security of the labor force. Rewards comes in form of safety benefits such as health insurance, bonuses, payment of arrears, offering employees paid overtimes, offering paid annual leaves, and offering open days such as family-fun days for the entire workforce. Moreover, retirement benefits, social security, profit sharing, training, disability income protection, day care, and compensating tuition fees for employees who are pursuing education among others (Brookes, et al., 2010). When considering the national culture in regards to reward management, denying the above-mentioned rewards or benefits may be, seen as lacking the spirit of sharing, being greedy, and being unappreciative. The culture of reward management differs dismally across various societies (London & Richard, 1992). Effective reward management by IHRM help motivate and promote increased morale for the workforce, improve job satisfaction, help enhance high performance, generate higher profits owing to more efforts put in by motivated workers, decreased rates of employee turnover. Rewards should be, offered by merit, fairly and without favor. National culture influences perception where an individual focuses on what they consider a priority, give structure to otherwise indefinite social incident, bridge gaps in deficient of sufficient information and anticipate the future, hence seeing things that are non-existent and not seeing things that exists. Moreover, national culture influences beliefs, values and behavior. By understanding this, an IHR manager can effectively develop, implement and monitor recruitment and selection processes and the organization’s reward management programs that are, aligned to existing national culture of various societies that the organization may establish operations (Jenkins, 2005). Since national culture is group oriented, the human resource manager should ensure selection and rewarding practices that promote teamwork, sharing of information, individual and group accountability, effective relationships among workers and between workers and the management. This helps in embracing culture diversity in working environments, minimizing notions of prejudice between majority and minority groups hence eliminating stereotypes that instigate discrimination, hate, low self-confidence, self efficacy and esteem levels for minority groups (Jacobs & Larry, 1993). Culture diversity is, presented in form of ethnicity, religion, social status, language, accent, social cultural values and beliefs, race, nationality, health status, gender, lifestyle, dressing codes, sexual orientation, and political views among others. By understanding the national culture of a particular society, the human resource manager is able to use appropriate symbols, values, labels, rituals, heroes and practices when conducting selection processes and when structuring the reward systems (King & Zeithaml, 2001). This minimizes lack of harmony between the human resources and their national culture. Implications for organizational managers are 1. -From the discussion above and past researches, it is clear that it is insufficient to suppose that a strong organization culture can triumph over national culture. Lack of proper alignment of the organizational and national culture results conflict. This is where an employee faced with a culture that contradicts their national culture; they pick the later and disregard the former. On the other hand selecting and rewarding employees who embrace the organizational culture over those who do not, offer additional challenges in ensuring equity. 2. It is fundamental for IHRM to cautiously, analyze its corporate and business culture against the national culture in regions they operate from 3. By conducting surveys, HRM can take precautionary measures in areas, which can generate divergence within corporate and national culture, to ensure full commitment and participation from the workforce. This entails altering elements of the corporate culture to fit into the national culture regardless of their success in another region. 4. Since not all national cultures are effective and good for business, there is a need to promote an international culture that business organizations and different societies can adhere to without outdoing the other. Conclusion The question was ‘Does national culture always matter in International Human Resource Management? The answer is yes it does. This is because despite the level of education, advancement in technological solutions and increased competition in world market environments, the decisions, opinions, thoughts, behaviors, actions, and cognitive processes are, influenced by existing cultures. Therefore, IHRM needs to align the corporate and business cultures with national cultures of the regions they operate in even if this means altering the elements of the corporate culture. 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