Impact of Culture in International Human Resource Management

912 Words Dec 8th, 2015 4 Pages
Impact of Culture in
International Human
Resource Management
Martin

Human Resource Management relates to the processes involved in managing people in international enterprises (Helfrich, et al., 2008). Although the literature has identified several criteria to classify the degree or intensity of an enterprise´s multi- or transnationality for this short abstract a multinational enterprise can be defined as “an enterprise which conducts it activities, control production or service facilities and activities that add value in more than one country”
(Zurawicki, 1979). Among the first enterprises driving global business were those who signed on crews and chartered ships, handled, loaded and imported tea from India for the British
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Employee oriented versus Job oriented
2. Parochial versus Professional
3. Open system versus Closed system

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4. Loose control versus Tight control

Last dimension to differentiate culture are the organizational cultures. These can be bureaucratic, clan, entrepreneurial and market (Hooijberg & Petrock, 1993).
So what does that mean in practise? More recently, this ongoing discussion as to whether culture matters is influenced by a review of culture leading towards the emergence of a globalised business environment and globalisation is leading to significant cultural cross-pollination. (Bird & Stevens, 2003). According to
(Neyer & Harzing, 2008), as an example, pay for performance schemes, which are popular in the United States or United Kingdom, cannot be successfully implemented in other countries. Another example is the quality circle program, which is successfully used in Japan but would not be accepted in the United
States.
However, the question is not ‘if’, ‘how’ and ‘when’ culture influences crosscultural interactions, but to accept that individuals are different and create an atmosphere of inclusion and making a commitment to valuing diversity.
For any Multinational Enterprise, understanding that there are cultural differences between host and subsidiary countries will be very important and it is vital that staff are given adequate training.
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