Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Part 7 Cross-functional issues.

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Part 7

Cross-functional issues

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Global Thinking

• Concerned with all things that are different in doing business in more than one country at a strategic level

• Local thinking is informed by global thinking but carried out separately, as all action is local

Slide 30.1

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Global Thinking - HR Issues

• How cultural differences between countries can be accommodated

• How effective communication can be maintained across national boundaries

• Reference to employment aspects in localities

Slide 30.2

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Globalisation

• Has become a dirty word

• Blamed for many ills in the developing world

• HRM has to contend with human resource implication of globalisation

Slide 30.3

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Internationalisation

• Most complex form of decentralising operations• Involves differences in language, culture,

economic, political, legislative systems, etc • HRM helps to shape strategic direction• HR remains one of the last centralising forces• Decentralisation needed to empower

subsidiaries• International HR still lacks accepted definition

Slide 30.4

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Importance of National Culture

• Nationality has an effect on human behaviour

• Certain elements of national culture remain deeply rooted

• Cultural diversity

• Framework for fitting together the maze of cultural diversity - Hofstede

Slide 30.5

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Differences in National Cultures

• Individualism

• Power distance

• Uncertainty avoidance

• Masculinity

• Confucian dynamism (added later)

(Hofstede, 1991)

Slide 30.6

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Cultural Differences Between Nations (1 of 4)

Table 30.1  Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

Slide 30.7

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Cultural Differences Between Nations (2 of 4)

Table 30.1  Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

Slide 30.8

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Cultural Differences Between Nations (3 of 4)

Table 30.1  Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

Slide 30.9

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Cultural Differences Between Nations (4 of 4)

Table 30.1  Cultural differences between nationsSource: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

Slide 30.10

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Clusters of National Cultures

• Pyramid of people – examples: Arab speaking, Greece, Spain

• Well oiled machine – examples: Austria, Finland, Germany

• Village market – examples: Britain, Denmark, USA

• Family – examples: India, Singapore, West Africa

Slide 30.11

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Strategic Implications of Cultural Diversity

1. Centrality of decision making

2. Rewards & competition

3. Risk

4. Formality

5. Organisational loyalty

6. Short- or long-term orientation

(Hodgetts & Luthans, 1991)

Slide 30.12

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

International Communication

• A major challenge for HR

• What did he say?

• What did he mean?

Slide 30.13

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Barriers to Effective International Communication

• Frame of reference• Stereotypes• Cognitive dissonance• Language• Jargon• Corporate culture

Slide 30.14

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Purposes of International Communication (1 of 2)

• Reinforce group culture so as to improve speed & effectiveness of decision making

• Encourage information exchange in internationally related activities

• Form the background to succession planning activity

• Establish in people’s mind what is expected of them by parent company

Slide 30.15

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Purposes of International Communication (2 of 2)

• Facilitate change in a way acceptable to the parent company

• Undermine the ‘not invented here’ attitudes and thereby encourage changes

• Improve the attractiveness of the company in the recruitment field

• Encourage small activities which may be tomorrow’s cream & give activities perspective

(Foulds & Mallet, 1989)

Slide 30.16

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Conventional Approaches to Co-ordination

• Japanese centralisation

• American formalisation

• European socialisation

(Bartlett & Ghoshal, 1989)

Slide 30.17

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Increasing the Range

• Evangelisation

• Standards and norms

• Systems

• Concentration of capability

Slide 30.18

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Evangelisation

Evangelisation – process of winning acceptance of a common mission & shared purpose throughout the organisation

• Works through shared belief• Works through parables• Can use apostles

Slide 30.19

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Summary (1 of 2)

• International HRM still lacks an accepted definition and content

• Much international management activity is via multinational companies & policies of globalisation

• Understanding cultural diversity is crucial• Hofstede concluded cultures had 4 dominant value

systems • Hodgetts and Luthans suggested that Hofstede’s

findings influenced aspects of management

Slide 30.20

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Summary (2 of 2)

• Communication is exacerbated by differences in frames of references, stereotyping, cognitive dissonance & language

• There are three broad types of traditional forms of co-ordination

• More particular forms of co-ordination include evangelisation, standards & norms, systems, and locating capability

Slide 30.21