Analyze the Impact of National Culture on Human Resource Management

Table of Contents

ABSTRACT 3

INTRODUCTION 3

PERSONNEL MANAGEMENT (PM) AND ORIGIN OF HRM 4

HOFSTEDE'S MODEL OF CULTURAL DIFFERENCES 5

FACTORS THAT CREATE DISTINCTIVE NATIONAL REWARDS SYSTEM 10

National culture and rewards related preferences 10

The role of value orientation 11

Distributive justice 11

Socially healthy pay and pay differentials 11

Performance-related pay (PRP) 12

Financial involvement 12

Employee benefits 12

NATIONAL CULTURE AND SPECIFIC HRM ISSUES 13

Selection and Recruitment 13

Training 13

Motivation and reward system 14

Diversity at workplace 15

Merits and demerits of diversity at workplace 15

CONCLUSION 16

RECOMMENDATIONS 17

REFERENCES 18

ABSTRACT

The main aim of the study is to analyze the impact of national culture on human resource management. When considered in a cross-cultural context, the human resource strategies vary a lot. Hofstede's 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. Therefore, this report says that the human resource practices are bounded by culture, values of the society.

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 collective programming 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.

PERSONNEL MANAGEMENT (PM) AND ORIGIN OF HRM

Personnel management is a traditional administrative function. They are maintenance oriented. 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