Do Cultural Differences Influence HRM Practices - Coursework Example

Running Head: Do cultural differences influence HRM practices? Name: Lecturer: Course: Date: Table of Contents Table of Contents 2 Introduction 3 Job Analysis 3 Recruitment 5 Selection 6 Human resource planning 7 Career management 7 Conclusion 8 References 9 Introduction Culture is a key element of organizational environment that influences how the management responds to institutional duality. Culture can be defined as shared mental patterns of behaviour, thinking and feeling that distinguish a group of people from the other. It can also be defined as shared learning of cognitive, emotional and behavioural patterns that a set of people use to solve problems or impart on other new members (Aycan, 2005). Culture therefore shapes individual’s perceptions and behaviour. While it may be argued that HRM practices appear to be the most susceptible to cultural differences, divergent approaches in HMR suggest that cultural differences influence the differences in preferences and perceptions which impact organizational behaviour, including factors such as work-orientation, communication, conflicts, management style and decision-making. In this way, cultural differences cause convergence of management (Milikić, 2009). This means that cultural differences pose a great challenge to management practices basing on Hofstede’s cultural dimensions of job analysis, selection, recruitment, career management and human resource planning. This essay argues that cultural differences significantly influence HRM practices (Ismail, 2010). Job Analysis Job analysis consists of the processes of acquiring detailed information on jobs and how they should be performed, what it entails and features necessary for performing tasks involved in the job. Research evidence into cultural differences in job analysis established that job analysis is vulnerable to three of Hosftede’s cultural dimensions, namely individualism vs. collectivism, uncertainty avoidance and power distance (Meshksar , 2012). These dimensions impact the specificity of job specification and job description, method of job analysis and unit of analysis (Milikić, 2009). Role formalization and uncertainty avoidance are correlated. For instance, high degree of uncertainty avoidance causes a high degree of formalization of roles in organizational structures (Aycan, 2005). Therefore, in high uncertainty avoidance in, job analysis is likely to be more narrowly defined, detained and long-lasting hence reducing role ambiguities. On the contrary, low high power distance and uncertainty avoidance cultures job description may not be too specific. Hence, it is expected that work would be more dynamic while hob boundaries would be more porous (Aycan et al, 2000). In significant power distance cultures, the management centralizes power in few people while subordinates wait to be instructed on what to do. Under this scenario, there is frequent role overload and ambiguity. In this way, managers and employees may feel they lack clearly specified goals and objectives (Milikić, 2009). Additionally, they may not know what their responsibility is or what is expected from them. In these kinds of cultures, jobs may be defined in broader terms so that the HRM has more autonomy to instruct employees on what to do in a range of jobs. There will also be more dependence on supervisory guidance hence reducing the need to institute specific job descriptions. Hence, the HRM is expected to provide information on responsibilities, duties and needed features of a job (Ismail, 2010). Recruitment Recruitment consists of any HRM practice undertaken by the organization with the primary aim or attracting or identifying prospective employees. Culture influences a range of aspects on the process of recruitment. In which case, only those recruitment practices that are aligned to certain cultures are likely to be effective (Milikić, 2009). Basing on Hofstede’s cultural dimensions of Individualism and Power Distance vs. Collectivism, the influences can well be defined. Collectivism encourages preferences on informal and internal recruitment as well as network-based recruitment channels such as using employee referrals, job affairs and networking events. These are more desirable than using e-recruitment or newspaper ads. Restricted use of collectivistic cultures may be explained by the fact that candidates recruited externally may find it difficult to enter strong social networks as well as cope with the resistance that ensues after they are recruited (Ismail, 2010). This is specifically where an internal candidate is has backing. On the other hand, some researchers have found that the level of collectivism is correlated to a high preference of using advertisement for “males only.” People who stress on collectivism are likely to favour jobs offering them opportunity to form relationships or work in teams ad well as gain job experience. They may further favour jobs that emphasis cooperation compared to individual competitive achievements. Hence, HRM practices will have to prefer and adopt collectivism features when looking for such candidate. Indeed, high power distant and collectivistic HRM practices will often place significant importance on recruitment criteria that entail socio-political connections than on those that prefer hard criteria ones such as skills, knowledge and abilities (Aycan, 2005). Selection Selection is recruitment where a group of likely candidates is created before the right ones are selected. Put differently, it refers to a process where job applicants are assessed based on a range of methods with the aim of seeking the most appropriate individual for the job. The objective of the selection process is to forecast future working behaviours of candidates in the organization. Basing on Hofstede’s cultural dimensions, it is evident that culture influences selection as an HRM practice (Aycan, 2005). For instance, collectivistic cultures selection based on test scores will be rare while selection based on recommendations through socially constructed mechanism such as dinners, unstructured interviews and meetings will be more common. Conversely, in individualistic culture, HRM is more likely to select candidates based on whether they have the needed competency and abilities to select measures based on their validity in evaluating these attributes (Milikić, 2009). For instance, a common criteria for selecting candidates in North America is past experience, education, cognitive skills and personality traits. Selection in cultures that are collectivistic are more person-centred and focus on recruiting people with the remaining company and if they are loyal or may be trusted. Further, in collectivistic cultures HRM is more likely to recruit candidates who are relatives of employees (Nyambegera, Sparrow & Daniels, 2000). With regard to interviews, use of highly bureaucratic or structured interviews is less likely in individualistic and collectivistic cultures. On the other hand, uncertainty avoidance influences HRM to prefer using structured selection practices. Some researchers have also established that educational qualifications are more relevant for selection of candidates in power distance cultures since they emphasise on status (Milikić, 2009). Human resource planning Planning in human resource management is the practice of predicting the supply and demand for a range of human resources based on the anticipated trends in internal and external organisational environment within a specific period of time. It comprises goal-setting, program implementation and strategic planning (Milikić, 2009). Although there have been limited researches on the influences of Hofstede’s cultural dimensions on human resource planning, some studies have suggested that the influences of large power distance cultures on human resource planning may not exist or may be rare because of centralization of the decision-making process in planning. However, uncertainty avoidance in favouritism with regard to promotions is likely to occur. In regards to structural or institutional contingencies, human resource planning may be oriented in the short-term in organizations operating in environments where high political instability and high economic instability exist. Here, planning will be guided by social needs in public sector or business needs in private organizations (Nyambegera, Sparrow & Daniels, 2000). Career management Career management refers to the process whereby the aspirations and competencies of employees are evaluated and their personal development planned and guided in compliance with opportunities available at workplace. It allows for identification of talents and placement of employees on jobs where their skills are required (Nyambegera, Sparrow & Daniels, 2000). Basing on promotion, high power distance and collectivistic cultures influence how HRM conducts promotions. For instance, an employee with good interpersonal relationships may be promoted by the HRM. Other influencing features may be loyalty and commitment. Further, in high uncertainty avoidance, HRM may select managers based on seniority (Milikić, 2009). Conclusion Cultural differences significantly influence HRM practices. Culture shapes individual’s perceptions and behaviour. It therefore has a significant impact on the approaches used in managing people resources within organizations. In which case, cultural differences require differences in human resources management practices. Basing on Hofstede’s cultural dimensions of job analysis, selection, recruitment, career management and human resource planning, the ways in which cultural differences influences HRM practices are identified. With regard to job analysis, Hostede’s dimensions impact the specificity of job specification and job description, method of job analysis and unit of analysis. With regard to recruitment, Hofstede’s cultural dimensions of Individualism and Power Distance vs. Collectivism show that collectivism encourages preferences on informal and internal recruitment as well as network-based recruitment channels such as using employee referrals, job affairs and networking events. In selection, individualistic culture may influence HRM to select candidates based on whether they have the needed competency and abilities to select measures based on their validity in evaluating these attributes. References Aycan, Z. (2005), “The interplay between cultural and institutional/structural contingencies in human resource management practices”, International Journal of Human Resource Management 16:7 July, pp. 1083-1119 Aycan, Z. Kanungo, R., Mendenco, M., Deller, J., Stahl, G. & Kurshid, A. (2000). Impact of Culture on Human Resource management Practices: A 10-Country Comparison. Applied Psychology: An International Review 49(1), 192-221 Ismail, H. (2010). Cultural Influences On Human Resource Management Practices; Implications For Arab. Subsidiaries Of Multinational Enterprises. Urbana: University Of Illinois Meshksar , S. (2012). A Comparative Study of HRM Practices Based on Hofstede Cultural Dimensions. Gazimağusa: Eastern Mediterranean University Milikić, B. (2009). The Influence Of Culture On Human Resource Management Processes And Practices: The Propositions For Serbia. Economic Annals, LIV(181), 93-118 Nyambegera, S. Sparrow, P. & Daniels, K. (2000). The impact of cultural value orientations on individual HRM preferences in developing countries: lessons from Kenyan organizations. Int. J. of Human Resource Management 11(4), 639–663 Read More