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FACULTY OF BUSINESS, ENVIRONMENT AND SOCIETY
HUMAN RESOURSE MANAGEMENT (M11HRM)
INDIVIDUAL ASSIGNMENT
Module Leader: Terrence Wendell Brathwaite
Submitted by:
Student ID 3064975
Table of Contents
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Table of Contents ............................................................................................................ . 1
ABSTRACT ..................................................................................................................... 3
INTRODUCTION ............................................................................................................. 3
PERSONNEL MANAGEMENT (PM) AND ORIGIN OF HRM ................................................ 4
ETHICAL CONCERNS .............................................................................................. ...... 5
INSECURITY AND RISK ................................................................................... ............ 5
SURVEILLANCE AND CONTROL ......................................................................... ......... 5
DEREGULATION ..................................................................................................... .... 5
RHETORIC AND DECEIT ..................................................................... ............ ............ 6ETHICAL FRAMEWORK: POLICIES AND PRACTICES ........................................................ 6
PAY AND REWARD SYSTEM ................................................................................... ........ 7
NATIONAL CULTURE AND REWARDS SYSTEM ............................................. .................. 7
DISTRIBUTIVE JUSTICE ............................................................................ ...................... 8
PERFORMANCE RELATED PAY (PRP) ............................................................................. . 8
NATIONAL CULTURE AND SPECIFIC HRM ISSUES .................................... ...................... 9
SELECTION AND RECRUITMENT ................................................................................. 9
TRAINING ................................................................................................................... 9
MOTIVATION AND REWARD SYSTEM ........................................................................ 10
DIVERSITY AT WORKPLACE ............................................................................ ............. 11
MERITS AND DEMERITS OF DIVERSITY AT WORKPLACE ........................................... 11
HOFSTEDES MODEL OF CULTURAL DIFFERENCES ..................................... ............ .... 11
CONCLUSION ............................................................................................... ........... ... 15
.............................................................................................................................. .... 16
RECOMMENDATIONS ............................................................................. ............ ......... 16
REFERENCES ............................................................................................................... 17
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ABSTRACT
The main aim of the study is to analyze the impact of national culture on human resource
management. Hofstedes work is most prevalent in cross-cultural management studies. So
his dimensions in national culture are used in the analysis of India and US. This study
defines how pay, motivation and the reward system are influenced by the culture. The
cross-cultural merits and demerits are mentioned in this report. This report also
concentrates on national culture influences on human resource management. This report
shows that the national culture influence on human resource management practices.
INTRODUCTION
Human Resource Management (HRM) is highly influenced by culture. Many aspects of
HRM are different in different countries. When studying about the impact of culture on HRM
it is necessary to see what is meant by culture. Culture is a complicated concept among the
researchers. In anthropological and sociological terms, culture refers to the values and
attributes of the community the people belong. Hofstede defines culture as the collectiveprogramming of the mind based on a broad tendency to prefer certain states of affairs over
others (Tayeb 2008). Tayeb defined culture as historically evolved values, attributes and
meaning which are learned and shared by the members of the community and which
influence their way of life. All researchers give different meanings to culture. It is different
between nations. HRM can be influenced by culture. Some HRM functions like recruitment,
pay, reward system, training, and development are underpinned by associated culture
values.
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PERSONNEL MANAGEMENT (PM) AND ORIGIN OF HRM
Personnel management is a traditional administrative function. They are maintenanceoriented. These are usually performed by the personnel department in an organization.
They will react, respond only when problems arise. The main motivators of PM are
compensations, rewards, job simplification and so on. PM is criticized in many ways.
Employees are viewed as economic animal who can be motivated through the
manipulation of reward system. The power is playing in many organizations .the managers
want the employees to do what they want. Attention is little paid to the views of the
employee. (Tayeb 2008)
HRM is an American invention in early 1980s. It was practiced in some companies and the
positive record adapted it many companies. Then it came to European countries. The
effective HRM leads to higher productivity and higher performance. HRM also deals with
personnel functions buts they are planned and implemented with regard to the companies
strategies. (Tayeb 2008)
According to Porter, The strategic role of HRM is to support activities of the organization.
HRM is different from personnel management in three ways. (Tayeb 2008)
Firstly, Personnel management focuses on the management and the sub-ordinates and
HRM focus on the entire management team.
Secondly, the line managers have the main role in HRM and to achieve profit by
coordinating resources. But this is not in case for the personnel management.
Thirdly, the aspect of the HRM is the management of organizational culture and the
personnel management has no role in this.
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ETHICAL CONCERNS
INSECURITY AND RISK
In recent years the job insecurity and risks are increasing. This can be because of the
macroeconomic climate change and the increase in unemployment. It can be also derived
from the more conditional forms of rewards and contracts of employment. This can be
problematic. There is a lowering employment standard. The risk is another concern which
is transferred between the financial bodies to the paid employment. The transfer is not
equitable. The stronger party always has the power in the organization. They will exploit
that power in the employment relationship. ( Winstanley, 1996)
SURVEILLANCE AND CONTROL
This concern is about the changes in the work organizations and the management control.
A psychometric test is an example for this. Bureaucratic performance management has
also affected the employee commitment to work through cultural change. The rights are
taken as granted. There is no employee privacy. They have to work beyond the contract.
Long hours work has caused stress and health problems. New forms have increased work
productivity but it has affected the employee wellbeing. ( Winstanley, 1996)
DEREGULATION
Within the firm there is deregulation done by the management when they make decision
making. There is no scope for employee participation in the work place. This is against thedemocratic right of the employee. ( Winstanley, 1996)
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RHETORIC AND DECEIT
This is the final concern. There is a decline in the management integrity. There will be
insecure employment and there will be a diminished employer commitment to the
employees. There is strong inflexibility and the cultural difference affects the firm and also
there is a threat in the employee commitment. ( Winstanley, 1996)
The development of HRM is criticized in an ethical perspective. The managers are
undesirable in themselves. They want to accept the notion of justice because they trample
on employee rights. ( Winstanley, 1996)
ETHICAL FRAMEWORK: POLICIES AND PRACTICES
The policy and practices are the basis of the ethical framework in HR. it is an unsettling
experience. All policies and practices raise ethical questions. These are regard of the utility
of the organization and the consequences. Some of the ethical frameworks are:
Basic human, civil and employment rights.
Social and organizational justice.
Universalism.
Community of purpose.
( Winstanley, 1996)
HRM could benefit from these ethical frameworks. First, we need to be aware of all these
frameworks. The next step is to utilize the frameworks. We need to analyze the changes.
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Then we need to put these frameworks in action. Lastly, process of reasoning in which the
HR policy decisions and acts are justified. ( Winstanley, 1996)
PAY AND REWARD SYSTEM
Most of the employees believe that pay and rewards are the most vital part of the HR
management. Each country has a different approach towards the workers, for the time and
commitment they are bringing to their work. [Haris, Hilary 2003 : 91-95]. In this world most
of them are rewarded when they get older and when they are turning up. Also in many
parts of the world they receive payment when they start to be attracted to the work. As long
as they appear in the work they get rewarded always through annual increment and so on.
Sometimes people are awarded when they get older or when they are kind or when they
have more experience. [Haris, Hilary 2003 : 91-95]
NATIONAL CULTURE AND REWARDS SYSTEM
CULTURE-is the main point that make a difference in the national reward system. The pay
system varies from country to country. The efficiency of the various pay formulas and
techniques is influenced by the national culture. Researchers are made to discover the
robust set of influences that culture can have on the rewards behavior. Comparisons of pay
systems focus on four aspects. In each we can have a cultural basis.
Point of decision- taking
Management criteria for pay determination decision
The impact of certain reward strategies on employee behavior
The content and practice of the actual packages in different countries
[Haris, Hilary 2003 : 91-95]
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NATIONAL CULTURE AND SPECIFIC HRM ISSUES
SELECTION AND RECRUITMENT
The procedures used for the selection and recruitment in organizations are different in
different countries due to the difference in the societies and other organizational factors. In
US, the selection is done by the assessment process, interviews and written test. In the
Middle East the selection for higher positions is done informally that is through the relatives,
friends. Some companies do not have a separate department for recruitment. In Japan,
they will select highly educated persons and they will provide training more months incross-functional areas. So that they could work more flexible and can do any work as per
the requirement. In America, the business schools have tied up with some countries and
they will provide training for students and make them fit for the job. In Britain, the recruiters
will select the person who is right for the desired job and then provide them the full training.
(Tayeb 2008)
TRAINING
There are induction programmes and on-job training for the skilled jobs. Learning new skills
have more demand now. Competencies have arisen for new skills. Some countries like UK
provide apprenticeships. In some countries, the training is not prescribed by law. And in
France they are prescribed by law. Countries like US, Japan spends their time and money
for the training. (Tayeb 2008)
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MOTIVATION AND REWARD SYSTEM
Motivation is about motives and needs. They internally drive the employees for the better
production. Needs can be social or physiological. Motivation is needed in rewardmanagement for much reason. One is it enables the organization to work for employees so
that they can be more flexible in their work and they can be satisfied and enjoy their work.
Secondly, it allows employees more satisfied with the employers. If they are satisfied they
can be more productive. Finally, it helps to control the behavior of subordinates more
powerful. It helps to determine the company goals and make safe their achievements.
Different elements are considered as motivators in different organizations.some use money
as a motivator. The company has to find out what motivates the employees. Team working
is a powerful tool for determining the reward system. Incentive schemes are useful for
employees to achieve the target. (Beardwell 2004 : chapter 13)
When employees are motivated they will be committed to achieve the goals and anyone
who is not motivated will be dysfunctional is the company. It is difficult to identify the
individual needs of individual employees to set the goal. They consider what thing can be
motivate the employees. The key criticism is that they are unconscious in decision making.
They do not understand the full range of options available to them. They consider only how
the motivation helps. (Beardwell 2004: chapter 13) Reward system is one of the key policy
of HR. This aims to develop commitment, competence . Reward strategies are techniques
of the organization to protect the behavior and values. (Beardwell 2004: chapter 13)
Performance outcomes can be measured in many ways like accountabilities skills
acquisition, self-assessment, paired comparisons, ranking, rating scale, behaviorally
anchored rating scale, development plan approach, 360 degree appraisals. Also there are
potential issues with performance appraisal. Some of them include: Role of line managers
-they may not have the required technical skills, Demotivation consequences- when people
make a judgment on another the resistance begins, interpretation spins, and conflicting
roles. (Beardwell 2004 : chapter 13)
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DIVERSITY AT WORKPLACE
The diversity at work place is increasing. Because of the increase of multinational
companies in national boundaries, it is very common practice to see diversity in work place.Diversity is the responsibility of all. Managers play a key role in creating and developing a
diverse culture in the organization. Diversity cannot be achieved without the ownership of
the management.
MERITS AND DEMERITS OF DIVERSITY AT WORKPLACE
The merits are they increase the interpersonal skills of the employees, they increase the
teamwork skills, they increase the skills of the organization, people can interact with each
other and they can develop patience and competencies to compete with other companies
The demerits of diversity at workplace are they increase the conflict of interest, the minority
feels suppressed by the majority, there will be rise in language problem, dress code etc.
HOFSTEDES MODEL OF CULTURAL DIFFERENCES
(INCLUDES THE ANLAYSIS OF HRM PRACTICES OF INDIA AND USA)
In 1980s Hofstede found the five dimensions of national culture that can be used to
illustrate the different values in different native cultures of different countries. These
dimensions can be used to illustrate how people in a different culture act and how they
behave in work related factors.
These dimensions are power distance, uncertainty avoidance, individualism/collectivism,
and masculinity/femininity.
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Figure 1: Hofstedes Model of Cultural Differences
Hofstedes study has been criticized in many ways but it is very useful to know the cross-
cultural framework. The cultural difference can influence workplace value and business
communication.
Power distance:
If power distance score is higher, there are unfair relationships between the superiors and
the subordinates. It shows the inequalities of power and wealth are allowed in the societies.
Power distance is high in India. The score is 77 and the world average is 56.5. Their
employees have to show respect to the higher authorities. The decision making is
centralized. The managers will not include the employees while taking decisions about their
appraisals. In countries like US there is a low inequality culture. US score is 40. Employeesfeel free to consult with the managers in whatever situations they are. They do not feel it as
a disrespectful manner. They have the flexibility in their work. Here decision making takes
place in the presence of the employees. (Henderson 2008).
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Uncertainty Avoidance [UA]:
The extent to which how easily the culture corporate with the changes. If UA is high, it
creates a rule-oriented society. If UA is low the society is less rule-oriented and they arehighly tolerance to variety of opinions and also they take greater risk. US has high
uncertainty avoidance score, when compared with India. They have 46. Americans do not
displace or dismiss any employee whose work is unsatisfactory; they consider it as a gain
in efficiency. The employees in companies in these countries are attracted to long term
commitment. Companies in countries like Denmark Hong Kong, the people are not able to
corporate with the changes very easily and they find things in a sensible way rather than
following theories. They will try to find out the need for change and work accordingly.
People do not want to work in a stable work atmosphere. (Henderson 2008). India is low in
UA. The culture is more open to unstructured ideas and situations. The score is 40 when
compared to world average which has 65. (http://www.geert-hofstede.com)
Individualism / Collectivism:
It is the extent to which the culture encourages the individual. Countries like USA have
individualist culture. The score is 90. They give importance to individual achievement. Here
the aim is to be a good leader. People work only the normal hours and they want to get
paid if they work overtime. They do not consider the relation to overlap with the private
relation. Where individualism is high people are expected to take care of themselves and
their family. Countries like Iran and Peru they have collectivist cultures. The entire
organization works like one family. They support each other. Their aim is to be a good
member of the organization. They are willing to work beyond the official hours. They do not
have a paid overtime. The company will provide full support to their families in every
situation. They look after employees wellness in return for the commitment. (Henderson
2008). The score of India is 45. The world average scores 40 in this dimension.
(http://www.geert-hofstede.com)
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Masculinity / Femininity:
This is not about the discrimination in gender terms. It refers traditionally male and female
values. Countries like Japan and Australia have masculine cultures. They lay more value
for ambition, accumulation of wealth and material possessions. Countries like Netherlands
and Sweden are feminine culture. They put value for relationships and quality of life rather
than ambition. Countries like USA, UK is Anglo culture. They are moderately masculine.
This dimension is renamed as quantity of life versus quality of life. (Henderson 2008)
India scores 56 in this dimension which is high. There is a gap between males and females
in India. It may generate more competitive and assertive female population. US masculinity
score is 62 that show there is a gender differentiation. (http://www.geert-hofstede.com)
Long-term and Short-term orientations:
Later Hofstede start the fifth dimension of culture. That is long term versus short term
orientations. This defines the term horizons of a society. (Henderson 2008). India scores61. and the world average is 48. The US score is 29 and that shows it meet its obligations
and tends to belief cultural traditions. (http://www.geert-hofstede.com )
PowerDistance
UncertaintyAvoidance
CollectivismMasculinity Long-termOrientation
India High low medium high High
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U.S. Low Low Low High Low
France High High Low Medium Low
Table 1 : Cultural dimension measures by Hofstede ( http://www.geert-hofstede.com )
The analysis of Hofstede is done with India and US. The graphical representation of the
dimension is shown below:
Figure 2 : Hofstede dimension analysis between India scores and US scores
(http://www.geert-hofstede.com)
CONCLUSION
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In conclusion, the research on culture says that the multinational companies which
attempts to harmonies reward system will encounter opposition across different countries.
Companies are aware of the cultural differences when they decide HR policies and
practices.
Putting ethics into practice will be explored in future. It will be a development theme in HR.
There is a growth in the ethical consumerism and international labour standards. And these
developments put ethics and HRM on agenda.
Hosfedes work is criticized for identifying the different cultures of different nations. It seems
appropriate for small countries. We can see that there is no one same culture for USA or
CHINA or INDIA. Culture is having a strong impact on every HR function.
Performance management is useful only to some extent. Management adapts different
forms of reward system. The management should first understand the value of the reward
system and then start to implement it. They need to pay for the skills.
RECOMMENDATIONS
As per the analysis we can see that the HRM practices are influenced by the national
culture. So it is ideal for managers to consider culture component in order to formulate and
adopt the HR concepts from other countries. When considered in a cross-cultural context,
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the human resource strategies vary a lot. The human resource practices are bounded by
culture, values of the society. Work place culture needs to be balanced. All the employees
have to give back for their organization. So we need to create an environment where
people want to contribute and collaborate. We need to motivate people and also create an
environment which motivates them to give back to this. This report recommends finding
and developing a different management practice which is consistent with the companys
cultural values. So if we adopt these with the company environment, it can result in an
outstanding performance. The company has to enhance their management practices with
its environment to achieve this. Thus, the company can provide a successful performance.
REFERENCES
Beardwell, Ian., Holden, Len., Claydon, Tim. (2004). Human Recourse Management a
contemporary approach. 4 th edn. Prentice Hall.
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