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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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