Organizational Concepts And Cultural Context

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III. Organizational Examples: Both institutional context and cultural context have positive and negative aspects to HRM design in companies. HR staff in Hyundai, the second biggest car manufacturer in India, faced with law and policy problems. In May 2010, employees went on strike after the organization sacked and did not reinstate 35 employees due to alleged behaviour (Kramer and Syed, 2012). In addition, this was the third time that local workers had struggled against the company because of dismissing employees. Moreover, not only Hyundai was a victim of workers’ mutiny but also MRF struck and Pricol faced with similar issue, even one employer of Pricol died due to employee’s unrest. The reason for these problems is that labour laws in…show more content…
It is a true that the state limits the role of the company and HR department because only the government has a right to resolve any dispute between employers and employees. While workers have the right to complain or contest the company, the employer’s refutation only has a value after judgement by the state. Similarly, Nestle, a Swiss multinational organization with nearly 250,000 employees and more than 300 global factories faced with the same problem in Philippines when the strike of the union in 1982 was the beginning of struggle between workers and company later on (Selmer& De Leon). The reason of the conflict was the cultural misunderstanding between Nestle Group and Filipino workers. In detail, after a rapid period in 1970, Nestle forced employees to overwork, which made them do not have enough time for families. Besides, the organization tried to adapt to Western core values such as individualism and result-oriented that appealed to local workers. In fact, two core values of Filipino in communication are Pagsangguni and Paghihikayat (Selmer& De Leon, 2001). While the definition of the first one is to consult, which need others to give them advice, the second one means to convince which displays the cause why Filipinos wanted to be persuaded by somebody before making decision. Indeed, Filipinos are in
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