The Impact Of Culture On The Field Of International Human Resource Management Essay

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.

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

     Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum

With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.

An Organization success depends on how employees, leaders, groups, and individuals work together. Now a company is usually ran on a set of foundations that have been laid out in terms such as, but not limited to, values, beliefs, norms, language, and habits. In order to have a successful working environment, one must reach out to get to know their employee beliefs, values, most importantly get to know their employees personalities. Happy leaders, lead happy workers, who in turn are more dedicated, and willing to put the work in to make the company a success. In order to maintain a successful running business, you must learn to train, and maintain happy employees. In this paper we are going to look at Geert Hofstede, social psychologist and foremost authority on global and organizational cultures, and how he defines six dimensions: Power Distance, Individualism, masculinity, Uncertain Avoidance, Long Term Orientation, and Indulgence and how all these dimensions tie into a successful business. I intend to give you the two countries that I choose to compare using the Hofstede Six Dimensions of culture, to show you have different cultures impact their work relationships.

Organization faces different cross-culture challenges in areas such as: Mutual support, Innovation and Goal oriented. Managing through culture and not Rational management is seen as more creative way of managing. It is emotional appeal through shared values, it is soft, and it is managed through shared values and purposes. In marketing team of French company all the members belongs to different European countries, which is said to have cross-culture. It is very important for all the members of the team to understand and try to change organization’s culture by using typologies, which provides a quick way of capturing an overall impression of the organization and allow them to compare it with other organizations. There are two types of typology that can be used are Deal and Kennedy’s typology, Charles Handy’s typology etc. Deal and Kennedy argued that an organization’s culture is a product of environment in which they operate, given on the basis of degree of risk and speed of feedback. Four cultural categories are Work hard/play hard, Process culture, Tough-guy macho and Bet-your-company culture. Each of these cultures has their own strength and weaknesses. Charles Handy argues that organizations should try to match their types of cultures to the external needs of the environment. He offered four cultural categories such as: Power culture, Task culture,

In this era of Globalisation, cross cultural management is the biggest challenge that is faced by the organisations. Within the business context, cross culture refers to interaction between different cultures. Cross cultural management refers to managing the employees from different cultural background in one environment (Adler, 2008). Cross culture management is a significant issue within the organisations as the success of an organisation depends upon the smooth interaction of the employees. This paper is aimed at providing insight on the cross cultural management and the main issues and challenges relating to cross cultural management. For the purpose of this paper, two articles, “Cross-cultural Differences in Management”, by Amman & Jordan

Cross culture is the interaction of people from different backgrounds in the business world. Cross culture is a vital issue in international business, as the success of international trade depends upon the smooth interaction of employees from different cultures and regions. A growing number of companies are consequently devoting substantial resources toward training their employees to interact effectively with those of companies in other cultures in an effort to foment a positive cross-cultural experience. Cross culture can be experienced by an employee who is transferred to a location in another country. The employee must learn the language and culture of those around him, and vice-versa. This can be more difficult if this person is acting in a managerial capacity; someone in this position who cannot effectively communicate with or

Managers were concerned about knowing and understanding each and every perspective of their employee’s cultures. As they know that without studying or knowing the culture, coordination cannot be built between the employees. It is the existing perspective of managers dealing with cross-cultural management (Sultana, 2013).

“Culture has become very important topic of international business”. Lee, Y., & Liu, W. (2012). Imagine a successful organization in the United State wants to enter to another country’s market like India. These two countries have many differences in their culture as general and their individuals are influenced by the national culture. It is important for a leader to know individual’s differences and cultures in order to have an effective leadership, and run a productive and successful business in other countries. Even in inside of a country which has multinational employees, culture differences would be challenging. Human diversity may cause many conflicts; a good leader is the one who knows all the diversities, and manages them toward the

This paper will explain how the challenge of the best performances project reported on this special issue to identify which human resource performances stood out transversely which countries and why. It will be determined as the universal best performances, or virtuously situation detailed performances that were pointless out of ethnic backgrounds.

Cross Cultural management explains the behaviour of people in organizations worldwide, helping managers and firms to understand how to act in business matters dealing with the different cultures. (Adler, 2008)

Rothenberg et al. (2015) commented on the essential fact that Human Resource Department is one of the essential departments within the organization that helps in management of the entire organization in the most successful and methodical way. This assignment will be discussing about relocating a manager from an Australian based organization named Boss Resources Limited in Australia to Sweden. This results in facing a large number of problems that impacts the working life of the manager in Sweden. According to the viewpoint of Caganova et al. (2015) the HR department is liable to see through the various issues within the organization and hence need to be focused towards the working life of the employees. This assignment deals with the identification of issues that are identified in the HRM and management of employees and workplace. Moreover in this context the issues regarding the employment relationships are also discussed vividly.

Good organisational behaviour from a firm is to understand the core values of their host’s culture. Culture is shared knowledge, traditions and values of perception as a result of cognitive thinking and similar attitudes. In international management for long term investment, in order for the firms to conduct successful business globally, paying attention to the cultural aspects is key to being devoted to the residential conditions. Conjointly international managers will often apply culture as professional base of a corresponding communication with other firms or ethically in respect to society, long term this can form a quality correlation with the government who has the authority that regulates aspects of the law that can affect how domestic this company remains. Fonterra, is a New Zealand, dairy based company. With over one hundred successful manufactures globally, however Fonterra has in recent times had poor joint ventures, due to poor ethics of other parties. Specifically with a party based in China. (fonterra, 2014) A result of the poor unethical quality of the products made, lowered Fonterra’s credit rating. While Fonterra’s credit rating and reputation of ethics declining. In saying this, there is no evidence that this could lead to lost profits long term. However its business with China and reputation is not being consistently communicated correctly, as the quality of the dairy products are not meeting any

In 21st century, we are seeing a big leap in the globalization of business and with this, the ability of management of an organization to work effectively across the cultural and national borders is playing a critical role in business success. Staffing management of multinational companies is a complex issue to the international human resource management (IHRM). With this stated, the statement, “Culture is a major variable for international management” is true in every sense.