Cross-Culture ManagementSession 6: Culture and HRM

The role of human resourceFrom a normal resource to a key resourceHRM from a normal function to a central, critical oneAlignment between strategy and HR

Intro on HRM and culturesHuman focused as individual - resource or as member of social system leads to different HRM treatment:instrumental: individual needs, motivation, reward, performance appraisal (US)orsocial: employee power, representative, equality (EU)

Components of HRMRecruitment and selectionSocializationTrainingPerformance appraisalCompensation and benefits

Link these with cultural assumptions

Cultural determinantsRefer to Table 6.1

Culture and selectionFinding culture-appropriate employees from host country is challengingHiring for fit vs. skillsHR preferences of different culturesGermanyFranceSpain

Culture and selectionOpportunities for MNCs in finding staff from sectors neglected by local companiesThe case of Japan

Difference of hiring practice in task- oriented cultures and relationship-oriented cultures

Country differences in selection methodsItalyone-to-one interviews/education/application formUK/USemployer references/education/application formGermanyeducation/one-to-one interviews/application formSpainone-to-one interviews/personality test/cognitive ability testGreeceone-to-one interviews/education/biodataHong Kongapplication form/education/certificate or license(Ryan et al, 1999)

Selection methods1one-to-one interviews (Greece - Ireland)2education(Portugal - Spain)3employer references (Sweden - Germany)4application form(Hong Kong - Sweden)5panel interviews*(Netherlands - Italy)

* especially Netherlands, Australia and Ireland(Ryan et al, 1999)

Culture and socializationThe ritualsdrink and entertainment-karaoke with the senior after work in Japan, Korea (2 videos)strict orientation of corporate culture in IKEAinformal parties organized by newcomers in Vietnam

Culture and socializationCultural issues to watch outHierarchiesPower distanceSeparation between private lives and workHigh-context vs. low-contextIndividualism vs. collectivism (Salomon Brothers vs Goldman Sachs)

Examples from yourselves

Culture and trainingThe views on the right person for the jobGeneralist (UK) vs specialist (Ger)Company-specific vs general knowledgeBased on the views, methods of training would be differentOn-the-job, observation, mentoring, practicingJob rotation, seminar, official training

Culture and trainingSelf-help mentalityThe issues of control and destinyBottom-up training (US)

The case of top-down training in VietnamCultural meaning of top-down training: hidden agendas from companies and trainees

Culture and trainingModes of trainingstructured, pedagogical (Swiss)unstructured (UK)Training activitiesdiscussion, debate, challengepractical (US) vs theoretical (European) experiential vs cognitive

What underlying cultural difference?

Culture and performance managementsetting goalsmeasuring outcomesproviding feedback

purpose: improving performance

Culture and performance managementTypical performance management is welcome in US but not in local Asian firmsCulturally, why? (views about control, doing vs being, character vs performance)

Giving feedback is complicated, too.

Culture and compensationthe issue level reward can be traced to individualism and collectivismmeritocracy vs. harmonyascription vs. achievement America (effective pay for performance) vs. the world (ineffective, infeasible)financial rewards (US) vs. other rewards

Culture and developmentRelevant assumptionsbeing vs. doingperception about nature of managerial tasksskillstechnical expertiseconceptual ability

Culture and developmentAdvancements depend onresults, ability (US)elite education (France)who you know (where?)

Culture favors generalists: more job mobility, culture favors specialist: more loyalty and less mobility

Culture and HRMRefer back to Table 6.1