National and International HRM Flashcards
What are the 3 principle considerations in IHRM?
- The discrete, overlapping functional areas of HRM like recruitment and reward.
- National and International Context - which is the institution (legislative, economic, social, technological) and cultural context in which the firm operates.
- Employee Group - reflecting the ways in which the firm’s workforce can be segmented e.g. like seniority or value to the firm.
Culture is defined as
Culture can be defined as ‘a learned, shared, compelling, interrelated set of symbols whose meanings provide a set of orientations for members of a society’ (Terpstra and David, 1991: 6).
Culture, therefore, represents an organised system of values, attitudes, beliefs, assumptions and behavioural meanings that shape how members of a social group relate to each other and to outsiders.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=114]
Culture is
In broad terms, culture can be viewed as a set of
responses to the basic questions of how a group sees itself, how it relates to the environment, how it relates to others and how it relates to time (Kluckholn and
Strodtbeck, 1961). This is clear in Schein’s (1985) definition of culture as a set of shared solutions to universal problems of external adaptation (how to survive)
and internal integration (how to stay together) that have evolved over time and are handed down from one generation to the next.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=114]
Hofstede’s (2001) Dimensions of Culture
- Individualism (vs collectivism)
- Power distance
- Uncertainty avoidance
- Masculinity (vs femininity)
- Long term\short term orientation
- Indulgence vs restraint
Criticism of Hofstede’s dimensions of culture
- A large sample space of employees of a single organization is insufficient to generalise about the cultural characteristics of an entire nation.
- No Eastern European of African countries
Implication for HRM
National culture, at least in part, shapes the values, attitudes and behaviour of managers, employees and customers. In particular, the cultural background of senior management in an organisation is likely to ‘set the tone’ for management practice and directly influence organisational culture.
National culture also shapes the nature of the employment relationship in a given context and subsequently how HRM acts to manage this relationship.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=116]
Impact of the political-economic system is
the political ideology of a nation and the institutional context it shapes significantly influences the HRM practices, primarily in the extent to which government intervenes directly to managerial practice through legislation.
The impact of government is
establishing the political, legal and social context of HRM. The state has a number of distinctive roles (including the economic manager, legislator and employer)
and how the government seeks to fulfil each of these roles influences HRM practice, either directly or indirectly.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=121]
The direct influence and indirect influence of government relates to
The direct influence of government might be seen in employment legislation that curtails the ability of managers to act in a particular way (for example, by imposing minimum standards of employment).
Indirect influence might stem from its position as the regulator of trade, foreign investment and industry. For example, the government’s support for both inward and outward foreign direct investment (FDI) will determine the exposure of domestic firms to foreign management practices and, ultimately, shape the way the state regulates the labour market.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=121]
How does the stage of economic development in a country shape the societal, market and labour market conditions under which management operates?
Economically advanced nations are characterised by a high degree of urban population concentration and comparatively high levels of education across society, which can act both as a driver and by-product of a more knowledge-intensive economy.
Less economically developed nations are characterised by lower levels of education, less concern for welfare and an economy based upon agriculture or manufacturing.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=121]
How are opportunities and constraints for management practice associated with the prevailing economic conditions?
In times of economic downturn where unemployment is high or rising, the increased supply of labour means that management is in a stronger bargaining position over terms and conditions of employment and is able to manage more autocratically than in situations where labour wields increased power because of its relative scarcity.
Globes 9 Dimensions of National Culture
- Institutional Collectivism
- In-group collectivism
- Power distance
- Uncertainty avoidance
- Gender egalitarianism
- Human orientation
- Future orientation
- Performance orientation
Other factors that influence HRM practices are
Financial, social structures and labour unions
International Institutions - International Labour Organisation (ILO)
The ILO seeks to improve working conditions and eradicate exploitative employment practices through establishing conventions and enacting recommendations to improve worker rights across its 170 member states. ILO conventions outline legal principles that should be present in national legislation but which require ratification by each member state.
[© SAGE Publications - An Introduction to Human Resource Management - http://app.kortext.com/read/128160/?page=124]
Regional Integration
- European Union