torrington, hall & taylor, human resource management 6e, © pearson education limited 2005 part...
TRANSCRIPT
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Part 7
Cross-functional issues
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Global Thinking
• Concerned with all things that are different in doing business in more than one country at a strategic level
• Local thinking is informed by global thinking but carried out separately, as all action is local
Slide 30.1
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Global Thinking - HR Issues
• How cultural differences between countries can be accommodated
• How effective communication can be maintained across national boundaries
• Reference to employment aspects in localities
Slide 30.2
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Globalisation
• Has become a dirty word
• Blamed for many ills in the developing world
• HRM has to contend with human resource implication of globalisation
Slide 30.3
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Internationalisation
• Most complex form of decentralising operations• Involves differences in language, culture,
economic, political, legislative systems, etc • HRM helps to shape strategic direction• HR remains one of the last centralising forces• Decentralisation needed to empower
subsidiaries• International HR still lacks accepted definition
Slide 30.4
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Importance of National Culture
• Nationality has an effect on human behaviour
• Certain elements of national culture remain deeply rooted
• Cultural diversity
• Framework for fitting together the maze of cultural diversity - Hofstede
Slide 30.5
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Differences in National Cultures
• Individualism
• Power distance
• Uncertainty avoidance
• Masculinity
• Confucian dynamism (added later)
(Hofstede, 1991)
Slide 30.6
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Cultural Differences Between Nations (1 of 4)
Table 30.1 Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
Slide 30.7
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Cultural Differences Between Nations (2 of 4)
Table 30.1 Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
Slide 30.8
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Cultural Differences Between Nations (3 of 4)
Table 30.1 Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
Slide 30.9
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Cultural Differences Between Nations (4 of 4)
Table 30.1 Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
Slide 30.10
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Clusters of National Cultures
• Pyramid of people – examples: Arab speaking, Greece, Spain
• Well oiled machine – examples: Austria, Finland, Germany
• Village market – examples: Britain, Denmark, USA
• Family – examples: India, Singapore, West Africa
Slide 30.11
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Strategic Implications of Cultural Diversity
1. Centrality of decision making
2. Rewards & competition
3. Risk
4. Formality
5. Organisational loyalty
6. Short- or long-term orientation
(Hodgetts & Luthans, 1991)
Slide 30.12
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
International Communication
• A major challenge for HR
• What did he say?
• What did he mean?
Slide 30.13
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Barriers to Effective International Communication
• Frame of reference• Stereotypes• Cognitive dissonance• Language• Jargon• Corporate culture
Slide 30.14
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Purposes of International Communication (1 of 2)
• Reinforce group culture so as to improve speed & effectiveness of decision making
• Encourage information exchange in internationally related activities
• Form the background to succession planning activity
• Establish in people’s mind what is expected of them by parent company
Slide 30.15
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Purposes of International Communication (2 of 2)
• Facilitate change in a way acceptable to the parent company
• Undermine the ‘not invented here’ attitudes and thereby encourage changes
• Improve the attractiveness of the company in the recruitment field
• Encourage small activities which may be tomorrow’s cream & give activities perspective
(Foulds & Mallet, 1989)
Slide 30.16
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Conventional Approaches to Co-ordination
• Japanese centralisation
• American formalisation
• European socialisation
(Bartlett & Ghoshal, 1989)
Slide 30.17
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Increasing the Range
• Evangelisation
• Standards and norms
• Systems
• Concentration of capability
Slide 30.18
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Evangelisation
Evangelisation – process of winning acceptance of a common mission & shared purpose throughout the organisation
• Works through shared belief• Works through parables• Can use apostles
Slide 30.19
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Summary (1 of 2)
• International HRM still lacks an accepted definition and content
• Much international management activity is via multinational companies & policies of globalisation
• Understanding cultural diversity is crucial• Hofstede concluded cultures had 4 dominant value
systems • Hodgetts and Luthans suggested that Hofstede’s
findings influenced aspects of management
Slide 30.20
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Summary (2 of 2)
• Communication is exacerbated by differences in frames of references, stereotyping, cognitive dissonance & language
• There are three broad types of traditional forms of co-ordination
• More particular forms of co-ordination include evangelisation, standards & norms, systems, and locating capability
Slide 30.21