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Title: Changing Paradigms An Essential Ingredient in Human Resource
Management for the Next Millenium
Author: John M. Read
Affiliations: MRIMAS, MSII, ASHRI
Address: Robinson Road Post Office
PO Box 1040
Singapore 902040
Telephone: (65) 354 3551
E-mail: [email protected]
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Title: Changing Paradigms An Essential Ingredient in HRM for the Next Millenium
Abstract
In an increasingly globalised marketplace, organisations are having to learn to manage
cross-cultural work. What does this mean for the HR Agenda in the new millenium?
This article maps external and internal forces acting on work and companies. Models
are proposed for dealing with the effects on work these changes bring. Notably, cross-
cultural management requires more flexible HR systems to achieve outcomes required
by the corporate mission.
Key forces acting in the global business environment together with strategies for
managing in this new environment are proposed. Outcomes for HR management in
the new millenium are identified and explored.
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Word Count: 6,716
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1. Changing Definitions & Patterns of Work
Let us consider the forces acting from the external environment that effect the
transactions between people and their work.
There are six major groups of pressures arising from the external business
environment independently of the industry concerned. This means that there are many
more if one proceeds to industry level analysis. (And, of course this is exactly what
any professional HR Manager must do to ensure that he is in touch with the full range
of significant impacts for her business).
The six pressure points are:
1. competitive globalisation
2. increasing international business & intermingling of staff from different cultures
3. IT and its impact on work
4. changing business strategies
5. new relationships arising from internet and other electronic communications
6. rates of change and types of change, especially those that are market driven
The relationship of these six pressure points, to work is depicted diagrammatically in
Figure 1. below. This diagram shows the external and internal pressures having a
significant effect on work and its management. Especially, the observed outcomes for
human resource management can be defined by considering these forces.
Insert figure 1 here.
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Figure 1. Changing Definitions and Patterns of Work
5
CHANGING
DEFINITION AND
PATTERNS OFWORK
COMPETITIVE
GLOBALISATION OF
BUSINESS (1) - creating new
platforms for work
Rise
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IT impact on work,
the types, times,places and methods
as well as the
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hierarchical and
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human relations that
arise, as well as
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with machines
Changing
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Ratesofchangeinexternal
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Rolechangesanddemands
increasingmultitasking,
multiskilling,careerself
managed, selfmarketing,
teambasedworkandglobal
competenciesincreasingly
importantRelationshipschanging
,atall
levels,increasingresponsibil-
ityisbeingallocatedto
fewer&fewerstaff,somore
workandlessreturn,
Businesssharingtherisksto
agreaterextentwithem-
ployeeswithoutsignificant
improvementinreturnsto
them
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The first pressure point of globalisation and its effects on companies is made clear by
OHara-Deveraux & Johansen 1994. They identify trends toward a core periphery
model of companies where corporate reduction to core functions is the new order of
business.
Through implementing strategic alliances and other forms of restructuring there are
created greater opportunities available to do business either with or in other cultures.
They will present your staff with challenges to adapt their ideals about work settings,
relationship building and functionality in this new work paradigm created by
international mobility.
The competencies identified by OHara-Deveraux & Johansen for global workers are:
The ability to understand and communicate across multiple cultures, an ability
that begins with knowledge about our own culture
Technological competence in a time of rapidly proliferating information and
communication technologies, with a special appreciation of how they apply to
teamwork in cross-cultural, decentralised settings
The unique leadership skills associated with creating and sustaining business
teams in a global setting
And the elusive, ever-evolving art of facilitating or easing the sometimes
painful and always complex processes by which organisations and teams
accomplish work p.31.
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It would be prudent to identify all cross-cultural contacts up stream of your business
(suppliers, contractors for raw materials or sub contractors in your process). Also
within your business, say between different divisions located in different countries but
within the same value chain between the customer and your company. Or with
maintenance contractors or other service providers to your company, and downstream
of your business in delivery, accounting or other areas of significance between you
and your customers.
The success of these interactions will depend on cultural awareness, competence and
adaptability of your staff and the other parties staff also. Smith 1992 discusses various
types of cultural sensitivity training from simple awareness briefings to language and
other skill development programs. He concluded that many organisations provide very
little, especially US companies. Importantly though he shows that success of joint
ventures and overseas postings are directly linked to such training, with the Japanese
and European companies amongst the most successful at this due to their high
commitment to preparing their staff in this way. Funakawa 1997 supports Smiths
findings that rigorous cultural training has a significant impact on cross-cultural
business success.
The scope of the new cross-cultural boundaries and success with these new
interactions cannot be over-rated. As developing nations call for technology transfer
there is a need to translate the learning of one culture to another. Joint ventures,
project work and increasing fragmentation of work to different divisions spread across
the globe are all creating new opportunities for misunderstandings and losses to arise.
Team-work has new meaning in this context with some staff involved in multi-cultural
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teams who may never get to meet one another face to face ( See for example OHara-
Deveraux & Johansen 1994).
Smith strongly advocates basic and advanced language training, awareness training
regarding the new cultural mores and practices, and general sensitivity training to
improve the candidates cross-cultural versatility.
Funakawa has identified five core competencies of cross-cultural management (refer
to model in appendix 2), as follows:
1. Geocentric mindset global mindset plus focus on competencies rather than
cultures, and whole-earth (geo) focus rather than a corporate focus; depends
on the next four competencies for its development
2. Strategic focus six Cs model: corporation, customer, competitor,
community, communication, and culture, as the key dimensions of success in
the new global environment (refer to model in appendix 3)
3. Cross-cultural communication skills, verbal, written, non-verbal all forms of
communication, their cultural coding and interpretation (decoding)
4. Culturally-sensitive management processes eliminating faulty processes due
to misunderstanding and other negative or unwanted outcomes from cross-
cultural management
5. Synergy learning systems institutionalised opportunities that promote mutual
cross- cultural learning and that provide a feedback function that reflects the
learning process. Begin by learning the perspective of others.
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Fukanawa argues that it is vital for companies to learn how to transform each cross-
cultural work situation into a real-life cross-cultural action learning opportunity.
Creating and building these competencies is the responsibility of management and
HRM has a key role to play as a provider of services in this area as well as a
champion for development of these in their company.
Fukanawa identifies two distinct patterns possible, one negative and one positive in
the development of these competencies: the vicious blame cycle and the virtuous
learning cycle.
The elements of the vicious cycle of blame are: Reluctant Intention + Information
which is limited + Interaction focused on problems will feed on itself and can lead to
a major crisis of cross-cultural conflict.
The elements of the virtuous cycle of learning are: Curiosity Intention + Information
wide-open + Interaction as a learning opportunity.
Fukanawa suggests that a focus on the three elements (intention, information &
interaction) can break the vicious cycle and convert it to a positive learning cycle.
Joint goal-setting, common meeting places with mixed seating arrangements that
allow for formal and informal interaction are practical examples that can assist
companies to achieve a positive intercultural learning condition in their company.
Leadership must also commit to the same processes with HRs support so that it is
considered essential at every level of the company. Creating success stories and
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informal talk about it can lead to strengthening of the ties between cultures, despite
their differences.
Funakawa further elaborates seven mental disciplines that global employees will need
to acquire and practice to encourage their versatility in cross-cultural communication:
1. Observe the situation without judgements
2. Tolerate ambiguity
3. Practice style shifting
4. Put your self in the other persons shoes
5. Reprogram your questions
6. Work interdependently
7. Keep mental stability and growth
He uses these as guidelines for better communications skills - a vital component in all
cross-cultural business. HRM needs to acquaint itself with this new body of practice
and integrate it into their company up and down their structure to empower a better
global functioning where it is needed most.
Arguably, IT has had the single most significant impact on the nature of work in the
last decade (Martin 1995).
IT has enabled the exponential growth in flexible working (Simm 1996) with the UK ,
USA and much of Europe embarking on action plans to introduce these new forms of
work into their corporations to meet the changing needs for productivity demanded by
the market. Flexible working reflects a Western notion that work was somehow fixed,
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and only now is becoming more flexible. This notion seems peculiarly Western
when put against the dependency of the Japanese workers to their company or the
interdependency of the Chinese to their family business. Simm offers a complete
guide to this growing phenomena in the West.
Mobility has been increased one thousand fold through better communications, better
travel facilities and better computing facilities in the last decade. Consequently, new
platforms of work have emerged. Microsoft has been successful just because of the
exploding growth in need for flexibility and standardisation of basic office technology
and clerical work requirements.
Now it is possible to work from virtually anywhere at anytime and still have your
report on your managers desk by the morning. This facilitation of information sharing
has and still is having such significant impact on the culture, structure and social
aspects of work that it is now a permanently changing landscape.
Some (e.g. Cappelli 1999 and Bridges 1996) argue that the company has become
leaner and flatter because of IT, since middle managers are no longer needed to collect
collate and interpret data for senior management consumption.
Now the data is kept in a corporate database and increasingly accessible to all. There
are many examples of this working very well such as Frito-Lay in the US who use
daily sales reports to direct their suppliers, as well as their sales and marketing efforts
to the hot spots of demand (Cappelli 1999).
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Tan 1994 reports that for HR to succeed it must get closer to the senior management
and strategic direction of the company where such IT infusion begins in the company.
This way HR can participate in minimising the sources of disruption to the company
inevitable from such fundamental changes as well as seek to lay out a plan for the
restructuring, up-skilling and maybe even downsizing that may follow.
Proactive behaviors by HR Managers at these points of IT infusion are critical for
their credibility. IT is taken on by managers to improve the strategic functioning of the
company (Martin 1996) and HR must be seen to be usefully supporting and even
enabling this infusion to be successful.
Some staff will take up the new frontier rapidly leaving behind their non-IT ready
staff in a blur of HTML, Java script and other apparently nonsensical language.
Relationships built on years of success in one paradigm have just seen the sight of
extinction; beliefs, reputations and success may all be potentially put at risk.
Uncertainty, mistakes and relationship mishaps may arise as this new paradigm takes
hold. HR should be playing a pre-emptive role in securing adaptation to this new
environment by all those affected. This is identified as transformational change by
Van Eyne Et Al. 1997, and is potentially the most stressful type of change since the
future is not mapped out, but perhaps only an incomplete vision.
IT changes can take the form of any of the three types of changes identified by Van
Eyne Et Al. (1996): developmental (continuous improvement in incremental steps),
transitional (from one known state to another) and transformational (from the known,
current state to a new unknown or incompletely mapped state). One can readily
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imagine the vital role of HRM in enabling and facilitating any of these changes to the
nature of work and the social and organisational context involved to reduce losses and
secure success from all of them with a minimum of fuss.
HRM must engage with senior management and line management, gain their respect
and become involved in solving these challenges with them. HRM can begin by
focusing executives on the need to create a learning mind-set amongst all staff. There
are different models, styles and opportunities for learning. Much is already available
about knowledge capital and knowledge management in companies (See for example
Savage 1996, Senge 1990 and Nonaka & Takeuchi 1995). Adapting is learning for
survival as well as growth. Companies need to create this atmosphere of learning as
essential and ingrained into their company. And across cultural lines. Leveraging
cross-cultural learning can be a source of competitive advantage, as Funakawa says, it
can be leveraged for a new perspective on work and the ways it is done for profit and
advantage.
HRM has an immensely important role in helping people to anticipate, adapt to and
even become excited about the changes happening. Even outsourcing of some
functions because of the introduction of IT into some areas has its positive side for the
survival and ongoing success of the company. Selling these ideas carefully and
effectively are some of the key competencies required for HRM in the next century.
This means a constant need for skill development at all levels of mastery with IT. And
now this must be self-driven development as companies expend less and less for
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training of their staff because of their fear of having them poached by other
companies (Cappelli 1999, Bridges 1996).
IT enables as well as limits the flow of human interactions since face to face contact
has far greater contextual and body language cues that cannot be reproduced by
computing means, not even video/audio is a satisfactory substitute for direct contact.
This results in such contact now changing its value as a rarer and more special form of
contact. It can now be used selectively and is especially recommended for cross-
cultural contact as the case studies by OHara-Deveraux & Johansen 1994 and in
Joynt and Warner 1996. These studies note how the failure of Western firms to close a
joint venture arrangement, or secure a deal because they failed to step into the cultural
shoes of their Eastern partners.
They presumed computer linked communications were sufficient for the relationship
to grow and cement a deal, how wrong they were! Indeed OHara-Deveraux &
Johansen prepared a list of the different uses and meanings attached to various forms
of electronic communication by cultures like Mexico and Canada to try and educate
their countrymen about this significant dimension.
HR Managers need to offer strategic guidance about these issues in their own context.
This can be done through effective research into all of the cultures of business interest
to their company and application of the models presented here in their context.
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Chow Et. Al. 1997 provides a comprehensive review of the strategic changes made by
companies in the Asia-Pacific region. They use goal-setting as an example of the
different values placed on different strategies because of the effects of cultural
differences between these west and the east.
Chow Et Al show us that US rate return on investment as their number one priority
reflecting their short term focus. (Chow p.6). Asian companies reflected by Japan and
Korea both selected market-share as their top priority showing their concern with
longer term survival rather than short term results. Chow summarises these
differences as follows:
Asian companies: longer term emphasis, working with rather than
against government (greater acceptance of the value and role of
authority), seeking harmony rather than confrontation, product
innovation.
US Companies: shorter-term emphasis, combative, individualistic
and non-cooperative, antagonistic.
These examples reflect the cultural findings of major researchers such as Geert
Hofstede (in Hickson 1997) and Hall and Hall (1989) about the major differences in
these two cultures.
Indeed the most sensitive analysis of these differences comes from the Japanese writer
Mayuma cited earlier. Mayuma traces the historical and philosophical roots of
Japanese work from before the Shinto period to today, reflecting a merger of Buddhist
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teachings about one correct way and fusion with Confucius teachings about duty,
obligation, and harmony with nature and fellow man. Chow Et Al., like many other
writers, notes that there is no universal management theory or strategy.
An analysis by Swedish Professor Anders Tornvall supports the proposition that it is
the unique national history of Japan that is the root system of the work ethic for the
Japanese. [Historical analysis is also traced frequently for China and indeed is the
dominant explanation model used for cultural analysis (see for example Part II Area
Studies in Joynt & Warner 1996 and also Hickson 1997)]
In the case of Singapore, it is characterised by two dominant forms of corporate
structure with their attendant cultural norms (Tung in Joynt & Warner 1996):
1. Multi-national corporations these may be diverse in culture based upon their
HQ/owner country (US, Japan, Germany etc)
2. Chinese family owned businesses uniform in culture usually following the
traditional form of autocratic leadership with family hierarchy, the dominant
structure
Interestingly, Singapore has shown some of the symptoms of the changes occurring in
the West already. Singaporeans have taken greater responsibility for their own
education and training as evidenced by the growth of education providers here,
however they appear to still depend on their employer to support their career
progression rather than seek to change employer for this purpose as frequently as in
the West.
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Further, the East is not becoming more like the West in its management style, indeed
there is plenty of suggestion that the East is much more successful in migrating its
businesses offshore than the West. Indeed Yao-Su & Warner in Joynt & Warner 1996
note that blue chip companies like IBM can face failures overseas. The reverse can
also arise that smaller, less prominent firms in their home market can be so very
successful overseas. Nokia, the small company from Finland, is a good example of
this. Porter (1990) cited by Yao-Su & Warner, identifies various advantages that must
carry over to the international arena for success to follow.
Differences are noted between (competitive) advantage transfer, technology transfer
and knowledge transfer. Each of these has its own characteristics and demands on
issues like linguistic skills, similarity of symbols and mythology to aid sales or
acceptance, cultural values and therefore success or failure from each parties
perspective.
Yao-Su and Warner state that transfer of these must be separated by the use source
dimension. For example transferring an entire R & D function (source) is of course,
very different from simply transferring the outcomes of the development in terms on
new products or services (uses). Each strategic option brings a different set of HR
implications.
Yao-Su and Warner note that advantages based on skills, competencies, capabilities,
know-how, and technology are more difficult to codify since they often reside in
people. Procedures and data cannot substitute for this tacit knowledge. Therefore they
can be difficult to transfer. However, the Japanese have been much more successful in
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transferring this non-codified tacit knowledge through their mentoring, partnering and
other relationship building methods.
This gives HRM a clue to the skills and methods needed to support a successful cross-
cultural transfer involving a significant proportion of tacit knowledge or experience
residing in local staff. These systems or networks of different types of relationships
represent the channels needed to create a successful transfer. These relationships can
become the focus of development of local networks in different locations. They will
determine the transfer of local tacit knowledge about how work is done and can be
defining importance to the success of a cross-cultural work venture. HRM can help to
define the strategies and tactics on the ground especially for expatriate staff to ensure
the success of the venture.
None the less Yao-Su & Warner note that there are very pragmatic business reasons
why (especially) proprietary knowledge is kept at home and the outcomes of this are
exported. Other strategies like buying out an overseas business to gain access to tacit
knowledge will not always work since the new owner may collapse the structure or
fail to learn how to operate or motivate it. Hence such simple attempts like Sony to
purchase Fox Studios never taught it how to make great movies. Rather the studios
learnt how to extract much needed finance from the parent company.
HRM must keep themselves in the very forefront of business strategy development as
they apply human capital and knowledge worker strategies in an often cross-cultural
context. Such HRM work can grow from an intentional effort to become a significant
strategic partner themselves in their own company (after Tan 1994). Then they can
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apply their specialised knowledge about the transfer of human capital to other cultures
in a way that sees the overall organisational mission achieved.
More companies are globalising, more web based companies are starting up,
competition is getting hotter in almost every market, different forms of working are
being used by more companies (see Cappelli 1999 for a thorough review of the US
statistics on employment too extensive to reproduce here). The number and frequency
of cross-cultural interactions in business is growing exponentially with governments
incentivising export, companies wanting to expand their market share and grasp wider
opportunities for profit.
HRM has several key roles: as a preemptive strike-force to lay the ground work for an
occupying mission into foreign territory or absorption of foreign talent into the home
territory. Creation of competencies (definition, selection and training and
development) needed to meet these pressures are essential programs defined above.
But adaptation does not mean just individual learning.
Creating the management imperative is a first step to meeting these pressures that
HRM must have a leadership role. To follow, HRM can create suitable reward and
compensation systems, social and other human relations needs, housing location
office and other facilities to create a suitable working environment. These are the
programs where HRM must be the driver and facilitator in these and many other
aspects of internationalising a business ensuring it can compete in the global
economy.
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Figure 2: Drivers, Outcomes and Intervening Variables in a Globalising Business.
21
Another boiling beakerof international
business:
Transnational
Companies (MNCs);contrast with truly
borderless business:web-based businesses
Driver 1: Dollars interna-tional market scope for cash
flow, profit and long term
expansion
Driver 2:
Competition -if you dont do
it yourcompetition
probably will oralready has...
Driver 3: Survival / Growthenter the new learning
opportunity for future business
the global market place
POSITIVE OUTCOMES:
Synergy of skills competencies,
vision and values; new productsand sales, greater market access
& share; greater cash flow &profit
NEGATIVE OUTCOMES:
Clash of values, conflict and loss of face;
project, venture and company failure;loss of market share, damaged brand
reputation, loss of licenses, sales, income &capital investment
Intervening Variables:[Chow Et. Al (1997), Hickson (1997), Joynt & Warner (1996)]
Management recognition and responsiveness to international or non-
traditional business environment Risk assessment political, cultural, financial, relational, technical,
geographical
Risk response action plans training, planning, understanding creation,structural arrangements, IT and other data collection and monitoringsystems, communication systems,
Internal variables support, belief systems, authority, financial and keyexecutive authorities, competence, systems for managing & support
External variables partner(s), government and other key player supports,market / product match,
HR Policies to deal with the new environment that enable and facilitatesuccess in new & different working paradigms
Sensitivity, awareness, global competencies, organisational context to
support globalisation, resources to meet plans, etc.
S F
U A
C I
C L
E U
S R
S E
FIG. 2: DRIVERS, OUTCOMES AND INTERVENING VARIABLES
IN A GLOBALISING BUSINESS
Term Paper3 9/99/jr
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Bonthouse (1994) [cited by Darlington in Joynt & Warner 1996] constructed a model,
refer to Figure 3 below, for the ways in which different countrys corporations process
or deal with these forces. His model of Preferred Business Intelligence Systems is
helpful to see how these forces are processed by different national groupings. He
notes that the US has some learning disabilities due to its emphasis on analytical
understanding. Other countries such as Japan and Sweden are more versatile &
therefore able to adapt more easily to a multi-cultural context. The effects of this are
very apparent when considering HR management issues in a multi-cultural context.
Insert Figure 3 here: Bonthouse Preferred Business Intelligence Systems
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Figure 3: Bonthouse Preferred Business Intelligence Systems
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Heller 1996 notes that the significant problems found by US firms in their HR matters
in China, both in joint ventures and mergers arises from their different almost opposite
views about individuals. The US focuses on the individual as the unit of measure for
selection, training, pay and promotion whereas the Chinese will focus on the group
for these matters. Heller found considerable support in all of the studies he reviewed
for cultural dimensions proposed by Hofstede as still valid and useful as explanatory
variables in to todays global HR environment.
Additionally, Hall & Hall define another key cultural dimension of strategic
importance: emphasis on the context of the interaction.
OHara-Deveraux & Johansen 1994 propose an Intercultural Learning Model, see
Figure 4 below. This model is used to map a pathway to greater cross-cultural success.
Models like this one help HR conceptualise the stages that their organisation must
progress through to improve their cross-cultural performance.
Insert Figure 4 Intercultural Learning Model (OHara-Deveraux & Johansen 1994)
here.
Individual responses to these changes are many and varied, depending upon their
motivation and capacity to adapt (personal versatility, resistance to change,
investment in the status quo and so on).
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Figure 4: Intercultural Learning Model (OHara-Deveraux & Johansen 1994 )
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According to the literature (Bridges 1996, Cappelli 1999, Simm 1996, Arthur &
Rousseau 1996, Sullivan Et Al. 1998 amongst others the internal forces of change are
brought by one or more of the following:
Internal pressures impacting in workers the strong getting stronger
- role swapping, multi skilling, multi tasking
- self marketing
- team based work
- uncertainty increasing
- greater work & responsibility
- greater information available
- greater opportunities for comparison with others
HRM can have direct impact on mediating these forces in individuals through
organisational changes. They are able to offer programs such as counseling, stress
management training, career guidance and outplacement services, supervisory and
other management programs to name just a few.
The processes used by HRM should reflect the mission and allocation of value to the
companys human capital and yet meet the immediate and long term strategic
objectives for the company as a responsible social citizen. Addressing the intervening
variables identified in figure 2. above may help to progress the company significantly
towards restructuring without resistance rather than paying for the losses such
resistance creates.
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A major point in this paper is that adaptation to new paradigms is a fundamental
objective for the next century. Internal and external forces are acting increasingly to
generate paradigm shifts in structure, financing, relationships, and core versus
peripheral work allocation (after Cappelli 1999) and ultimately the use of human
capital.
Markets and therefore customers drive labor (and that there are two types of
customers (internal and external) as well as employees or labor markets: internal and
external also). This is a significant cognitive change from earlier concepts of loyalty
and commitment to a single employer.
These concepts are thought to be virtually dead, except in the minds of those who
have not made the paradigm shift yet (Cappelli 1999 and Bridges 1996). Indeed, long-
term employment with the one firm can be harmful when it creates limitations of
group-think, and can no longer respond to the shifting market (Cappelli 1999).
Further, changes in the working patterns for those displaced or moving to flexible
working situations will result in consequential changes in their private lives (Cappelli
1999). Guidance on how to manage and adjust to these changes is also the purview of
a socially responsible HR function.
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3. The Cultural Context a new paradigm in every country
There is general agreement that culture is the most significant mediator of adaptation
after individual differences. It remains now to apply this learning to our practice of
human resource management.
But before this we need to briefly attack the limiting action of these very stereotypes
themselves as obstructive of further learning about and appreciation of another
culture. This is at the very root of the challenge facing business today how to get the
most out of each and every individual across all the national and international borders
that our business might stretch. Recall we have said that individual differences explain
the most variability with culture second. The problem can be defined as one of
diversity management at an individual and cultural level.
Research clearly shows that not all Western countries have the same profile. Hofstede
1990, Hampden-Turner & Trompenaars 1996, Hall and Hall all show the significant
variations between countries characterised as Eastern with those defined as Western.
Just picture for example a meeting between Koreans highly charged emotionally,
with much outward expression of that emotion such as desk or chest beating,
contrasted with the same meeting held in Japan. Now, there will be quiet following of
hierarchical speeches without open discussion but rather simple confirmation of the
earlier networking that preceded this meeting.
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Similarly, US to UK business relations shows how very different these two styles are,
with the UK manager much more concerned with protocol than his US counterpart
who wishes to get to the bottom line as soon as possible.
The cautionary message is that stereotyping such as east and west cannot be applied to
any country. Rather it finds use simply to begin to introduce the idea of different
paradigms of work and their cultural antecedents.
Being able to adjust into new cultural paradigms is the key attribute executives and
HR need to elaborate as an essential global competency for executives and whole
companies alike (OHara-Deveraux & Johansen 1996, Mayuma 1984, Tan Et Al.
1994, Smith 1996 etc).
The following Figure 5. tables the fundamental differences used to characterises east
and west cultures (note that this does not apply equally or at all to any specific
country in either the east or west):
Insert Figure 5. here
The dramatic and sometimes opposite perspectives between these two groups serves
to highlight the many different behaviors that each group norms towards.
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Figure 5. Cultural Differences Between East and West
Radically different paradigms of work between East & West and even
within each of these groups
EAST
* Group dominated,
social obligation & duty fulfillment
Relationships are based on
differential exchange, my obedience and
respect for your benevolence* Face work or self and significant other
protection prevalent
* Sacrificing self for
greater good
* Symbiotic relationships
developing and
supporting actors
* Place seeking in the group hierarchy
* Heterogeneity, emphasises differences
* Long term goals
* Harmony is sought
WEST
* Individualism dominates
* Relationships are based on reciprocal
exchange, like for like
* Self-expression is highly valued
* Self-actualisation* Single actors
performing
separately on stage
* Equality seeking
* Homogeneity, emphasises equality
* Short term
satisfaction
* Egalitarianism
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There are other dimensions that can be useful to distinguish these two groups broadly:
1. - Context the information that surrounds an event, very high for the East and
very low for the West (Hall & Hall 1989)
2. - Power distance levels between highest and lowest in a company East
significantly more than the West
- Masculinity/Femininity relates to gender roles and their differentiation
East maintaining gender roles more strictly than does the West
- Uncertainty Avoidance level and response to anxiety in society about the
unknown East is much higher on uncertainty avoidance than the West
(After Hofstede 1991).
- This measure is a controlling variable for success in global business:
Tung(1982,1987) found in her survey of multi-nationals that the Japanese
avoidance of uncertainty led to them giving 5 year postings unlike the US
who only give 2 year postings. Commitment, experience and utility are
therefore different for these two groups because of the difference in
perspective.
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3. - Polyocular vision the capacity to see from another persons perspective
high in the East and low in the West
4. - Hierarchical society and corporations East emphasizes importance
of position in, will have many levels, with each one not readily transferable,
West emphasizes much less and readily communicates across flatter
structures
5. Aidaschaft the social context or relationship terrain that each person belongs
to, their tribe(s) US does not emphasize, whereas Japanese and eastern
societies consider this the fundamental paradigm and not the individual
(Mayuma 1997)
6. - Time monochronic one event follows another linearly in time, and
polychronic many events are understood to be happening at once,
East is polychronic and understands that events may be overtaken by others
not in a linear fashion, West is monochronic and expects a before b before c, a
linear chain of events. (OHara-Deveraux & Johansen 1994);
past, present and future orientations societies can be characterised by their
orientation in these three different time zones, the East is more oriented toward
long term future as well as a more significant past, the West is more focused in
the present and the short-term future (Hall & Hall 1989)
7. Information flow pathways and speed of communications East has high
speed, multi-level, diverse networks; West uses low speed, singular pathways
and compartmentalize information. (OHara-Deveraux & Johansen 1994);
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- transfer of tacit knowledge unwritten information about the who, what,
when, where, and how of a companys operations; East transfers this via the
vigorous networking, mentoring and relationship building that they use every
day, whilst in the West they struggle to make Lotus Notes perform the same
function. Knowledge in an East company is more frequently shared in some
measure on a daily basis, whereas it is usually stored in West companies
(either in the grey mice who hold the corporate memory or in a database or
one or two individuals memory).
The forces acting on each of these two cultures are outlined in figures 1. and 2. earlier.
Add to this each countrys own political and geographical pressures such as Taiwan or
Turkey have recently experienced recently and the full scope of competency
requirements in our HR providers becomes clearer in the future.
Bridges 1995 suggests that the collectivism prevalent in the East may cushion the de-
jobbing trend now arising in the West. Interdependence remains a cushion for change.
Flexible working is already the case at least for family members in a family run
business. Moreover this is often a flexible job, and beyond flexible working, as family
members change roles, swap jobs and cover for each other during absences. Outside
this context flexible working does not yet welcome flexible jobs at least in the west as
a practice Simm (1996).
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5. What Next?
Cappelli 1999 notes that as pressures grow on organisations the demand for HR
solutions will grow consequently.
Work and jobs as we knew them have gone in many cultures, but not all. Traditional
Chinese businesses for example continue to resist outsourcing and other influences.
They have either already been used to keep the greater business within the family
tribe or are simply being ignored as the autocracy and inter-group relations are still
strong enough to bind the business together (Skromme, Granrose & Bee appearing in
Arthur & Rousseau 1996).
For all those working in Multi-national companies and global non-family businesses
the changes are evident. A stable job and a linear upward career path are not the likely
case. Individuals in this situation will have to learn to create their own jobs and career
paths (Sullivan 1998, Cappelli 1999, Bridges 1996).
This trend will continue to see companies focusing on their unique capabilities and
competencies and jettisoning unnecessary cargo in the form of non-core work. They
will also continue to be driven by their perceptions of the new demands in their global
environment, of market and competition.
HRM has to act in a proactive and responsive way to earn its stripes as a profit
contributor at strategic level as well as a service provider at operational level.
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Indonesian and Korean trends for example, see the growth of family conglomerates.
Perhaps in a few generations even these companies will separate into distinct units
and re-grow themselves further as separate businesses. Global branding is a unique
survivor in this changing landscape. More will probably realise this and seek to grasp
it. Like Sony, McDonalds, Coca Cola and others, this allows a single identity in many
different paradigms or cultures. Surely a recipe for success in the new millenium.
For HRM adapting and realising the learning organisation as a model for their
company will provide the platform for cross-cultural business to prosper (Fukanawa
1997). In this model, learning is rewarded at all levels (individual, team, business unit
and company) and is facilitated by appropriated investments in human capital,
technology and business management practices which are responsive to the different
paradigms found when doing global business.
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Author Biography:
John M. Read
Managing Consultant,
What Career Next?
John has over twenty years corporate experience as a specialist Human Resource
management. John has worked in Australias largest multi-national companies in
Australia and South-East Asia. He is establishing a specialist career management
consulting firm for global professionals based in Singapore.
Highest Qualification: Graduate Diploma OHM, Monash University Ballarat Campus
Bachelor of Science Applied Mathematics & Psychology,
University of Melbourne
John is currently studying for his Masters of Science in Asia-Pacific Human Resource
Management at the National University of Singapore.