How do various country cultures impact the business Rio Tinto Group UK and human resource practice of the MNE for RIO Tinto Group UK?
Cultural Considerations
Some of the most important objectives of HRM policy is to attract and keep the best talent and to provide strategies to motivate and improve staff performance. HR Managers are faced with many different cultures and not all cultures have the same intrinsic motivations. RIO Tinto has responded by seeking to embrace workplace diversity in order to achieve their business outcomes by increasing stakeholder relationships and providing local business partnerships. This approach helps by aligning local cultures with Rio Tinto business objectives. This is a common approach of MNE companies where by using local suppliers and local businesses they are able to benefit local communities and motivate staff with programs aimed to benefit indigenous communities. An example would be the Rio Tinto Aboriginal Foundation which aims to strengthen the local economy and promote diversity. (Rio Tinto, 2004)
Some cultures are very individualistic and some are more community based. Motivating community based cultures is often more difficult as they may be a nepotistic culture and promote and reward family or friends, rather than reward employees based on performance. Human Resource departments in western countries tend to use recruitment agencies and consultants who head hunt internationally for the greatest talent. Community based
Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources which includes selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative. Employees selected to work in foreign locations should be prepared beforehand with adequate cross-cultural training. For an organization to be successful in the international marketplace, it must be concerned with this fit from both an internal and
Culture is an observable, powerful force in any organization. “Made up of its members’ shared values, beliefs, symbols, and behaviors, culture guides individual decisions and actions at the unconscious level. As a result, it can have a potent effect on a company’s well-being and success” (One Page, n.d.).
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
The definition of culture in this context can be deducted from Trompenaars (1998): “The essence of culture is not what is visible on the surface. It is the shared ways groups of people understand and interpret the world.” (p. 3). From this statement we can extract that people with different cultures see and interpret the world in their own way. Thus, to motivate employees with different cultural backgrounds it is necessary to understand the interpretation the employees have of certain norms and values.
As a business manager in human relations you must understand the differences in cultures. The labor force in today’s society in the United States workforce is getting more racially and ethnically diverse, as the number of women are also increasing. Companies use human resources management to gain a competitive advantage. Companies can no longer take the traditional approach of depending on white males to form the core of the workforce. In today’s society managers must look broadly to use talent wherever it could be found. Managing diversity is a huge issue in today’s society because each culture has a different way to be handled. If managers can be effective at managing diversity in different cultures, they will have an easier time
If an organization is serious about leading and managing a diverse workplace, they must prepare a plan of managing cultural diversity not only for the current status of the diversity in their organization but also for the very starting point of accommodating new employees with different cultural backgrounds. It is all about the preparation for recruiting different cultural backgrounds.
Diversity in organizations has become a huge interest within the workplace due to many factors such as globalization, migration, innovation and most importantly because it is morally correct. Generally, as businesses main goal is profit, and the “workforce diversity management is such a pervasive business practice”(Bowes, L. 2013) they need to keep up with global markets. Diversity in Australia is important, as it is one of the most culturally diverse in the world, with 27% of Australian population being born outside of Australia, however the “management of cultural diversity in Australia has only been mediocre” (Fenwick, M. 2011). With only “few Australian firms [having] established diversity management practices” (McCarthy, G 2009) and
Australian workplace human resource managers are coming to the conclusion that in order for the organisation to function effectively, institutionalized dimensions creating the barrier of diversity need to addressed and removed. Successful organisations have embedded the principles of diversity management in all areas of Human resource management from recruitment, to workplace health and safety, performance appraisals, selection and training. Implementing these strategies not only improves the rapport and competitive advantage of the organisation within the business world, the organisation is also perceived as a positive influence within the community, enhancing the ability to reach organisation objectives and the overall perception of product and service quality.
How Hrm Motivate and Maintain their Employees in Nestlé. (n.d.). Retrieved November 21, 2014, from http://www.scribd.com/doc/56400633/How-Hrm-Motivate-and-Maintain-Their-Employees-in-Nestlé
As per the 14th Annual Global CEO Survey by Price Waterhouse Cooper for the year 2011, the need had been identified to bridge the gap of global skills as one of the biggest concerns, specifically for companies considering attraction, recruitment, development and retention of talents across the globe (Moran, 2014). Costly mistakes, frustration, and confusion are the main consequences of absence of global skills mainly because of ignorance regarding the effect of culture across the work place. This is because ignorance of culture differences result in unproductivity across the organization (Latimer, 2012).
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the
Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.
While in south-east Asian companies, HR managers are not faced with the same scenario. In the Philippines for instance, “Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas.” (Labor code of the Philippines, art. 27), therefore in a Philippine company mostly Filipino employees are working there. An HR manager practices decisions and makes plans based on the culture of the Filipino people.
Attaining global competence when entering into international joint ventures, in order to be successful, is dependent on developing a strategic approach to Human Resource Management (HRM) that ties to Business Strategies and to the overall Organization’s mission, vision, goals and objectives. Through problem analysis of this case, this paper will show evidence that international initiatives must be tailored to implement HR policies and practices that will complement the workforce taking in consideration sensitivity issues internal and external to the home-country, cultural awareness and differences in standards such as education and diversity. It will be stated that remedies that would bring about organizational
The corporation has a divert culture, because their employees are not coming from the same culture. Therefor the HR has a lot of work to be able to handle all the demands of their employees and satisfy them, also they need to be able to follow the customs of the host country and follow their traditions in handling the employees.