The Role of Culture in Human Resource Management Practices
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Running head: The Role of Culture in Human Resource Management Practices 1
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The Impact of Culture on Human Resource Management: A Global Perspective, Essays (university) of Business Finance
The role of culture in shaping human resource management (hrm) practices, focusing on internal and external influences. How cultural variables at the organizational, institutional, and societal levels shape managerial assumptions and beliefs, affecting hrm practices related to employees and tasks. The document also examines how national culture, specifically using hofstede's model, influences hrm practices and functions such as recruitment, training, and compensation.
What you will learn
- What are the three levels of culture that may influence HRM practices?
- How does culture influence human resource management practices?
- How do cultural attitudes such as ethnocentrism, polycentrism, and geocentrism affect HRM practices?
Typology: Essays (university)
2017/2018
1 / 6
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The Role of Culture in Human Resource Management Practices Student’s Name University Affiliation Professor’s name Course title Date
Running head: The Role of Culture in Human Resource Management Practices 1
Most of the time managers from across the world who are appointed to manage global organizations tend to bring with them their abilities and knowledge on human resource to this to this new and bigger enterprises. However after some time, they realize that some practices do not usually work to give them the desired results, and soon they find themselves struggling to figure out how to improve their management practice.
Human resource management requires a deep understanding of internal influences to an organization as well as the external environment of the same organization (Rotter, 1966). The internal factors influencing an organization represents the internal work culture, while the external environment of an organization is represented by institutional culture (resources available, ownership status and nature of the industry) as well as the social-cultural environment (power distance and partnership among others). Both environments are influenced by physical and socio-cultural environment (legal, social, ecological, political, and historical forces). Enterprise and social-cultural environment affect internal work culture and HRM practices as a whole.
In this context, Culture can be termed as common patterns of assumptions, value, beliefs, and norms of behavior of human groups (represented by organization, institutions, and societies). This is to say that the cultural variables that may influence human resource management practices can be in three different levels (Ayan et al, 1999). Internal working culture or organizational culture is the most basic level, it is constructed as a pattern of share managerial assumptions and beliefs that directly affect the Human Resources Managerial practices. These managerial assumption and beliefs connect with two basic organizational elements: the employees and the task. The managerial assumptions pertaining to employees deal with employees’ behavior and their nature; those assumptions relating to the task deals with how the
The cultural difference may affect different human resource function in an organization. This function may include hiring and recruitment, training and development, and compensation.
In recruitment and hiring different company and countries follow different policies. Hiring depends on the cultural attitude followed by a human resource manager (Miah, 2007). This attitude may include the following: ethnocentrism, polycentrism or geocentrism.
Ethnocentrism: is a cultural attitude in which there is consideration of cultural superiority. When a company expands globally it tends to use the same practice and policies followed in that specific country. Employees may have a negative feeling toward those types of culture because they may view them as self-centered and narrow.
Polycentrism: if a company expands globally it may find it difficult to understand the culture of the host country and decide to hire a manager who has the local understanding of the culture.
Geo-centrism: different manager may apply for specific managerial position across the globe. In the event of hiring there is more interaction between employees and through this they get to understand different cultures.
There may be decreased turn over as hired employees are able to adapt to the existing company culture thus saving the company time and resources used in hiring new employees (Egan, 2004). This is because new employees are able to adapt easily to the existing company culture and therefore fewer chances of leaving the job.
Training and development: this process must be undergone by every employee in order to understand the company, work, and the culture in the company. Most of the time is very difficult for a manager to train people who have varying culture in order to work in the same company
and achieve the desired result (Schein, 1996). The challenges that may be faced in training people with different culture include dressing and habits, language, value and norms among others. For example, American like to keep distance when communicating while Arabs prefer to communicate closely. Similarly, the meaning of some gesture and word may differ from one country and culture to another.
Compensation: compensation has to take into account different aspects in a country like cost of living, tax among others. There is a huge difference in the cost of living, retirement policy, tax structure, pension scheme, retirement policy among various countries. This aspect is to be considered by a human resource manager while determining compensation.
The aim of this study is to try to evaluate and shed some light on the into the issue HRM practices and organizational culture and why there is diversity across the globe. The attempt was significant because the impact of culture on an organization in the theoretical framework was examined. Therefore the “how” of culture to an organization was answered.