Impact of Culture on Managerial Decision Making in International HRM

This report discusses the impact of culture on managerial decision making in international human resource management (HRM) and explores the cultural and HRM issues that UK companies, like EE Limited, need to consider when locating a call centre operation in Japan. It highlights the importance of understanding cultural values and practices in decision making and the challenges of language barriers and compliance with laws and regulations.

BMP6003 International
HRM
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INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
Overview of organisation............................................................................................................4
The impact of culture on managerial decision making in relation to international human
resource management..................................................................................................................5
Cultural and HRM issues UK companies need to take into consideration when locating a call
centre operation in Japan.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals........................................................................................................................10
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INTRODUCTION
International human resource management is defined as a formative process to acquire,
allocate and utilise human resources in a global business to accomplish organisational goals. It is
termed as a set of activities to target human resource management at international level (Horak,
Brannen and Collings, 2019). It aims towards accomplishing objectives organisation and gain
for competitive advancements against rivals at international and national level. International
HRM mainly involves functions like recruiting, selecting, training developing, performance
appraisal and dismissal at international level. Present report has been conducted on, EE limited.
Company operate their functioning as a British mobile network operator established in the year
2010. Main products of entity include mobile telephony, fixed line telephony, broadband internet
and digital television. Present report include the culture as well as HRM issues that are required
to be effectively considered by entity in order to operate their call centre in Japan.
TASK
Overview of organisation
EE is a part of BT group which is one of the largest as well as most advanced digital
communications entity operating the services in Britain that deliver mobile and fixed
communications services. EE conduct their business functioning with having 553 retail stores
and offer their effectively to 32 million and more than customers. Company offer faster speed
sources comparatively to other entities in United Kingdom. It is one of the UK biggest and
leading mobile networks who offer different type of services like GPRS, GSM, Wi-Fi, spectrum
dongle, etc to customers. In addition to this has been determined that respective company
perform their business operations in telecommunication industrial sector. Further it has been
evaluated that company is duly committed to their customers to be one of the most trusted brand
in telecommunication services in UK. Company effectively aim towards sharing power of
connectivity among every individual in the provinces of United Kingdom. EE operate their
service with having number of responsible individuals, and significantly aim towards building
“Better Britain” by offering successful new digital infrastructure for country. In addition to this it
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has been evaluated that company effectively offer support to communities as well as individuals
in a best effective manner. Entity effectively conducts their business functioning with having a
vision to improve individual digital skills. Along with this by being most successful company in
United Kingdom in telecommunications industry they significantly boost youth employment.
Furthermore, they operate their functions in a best effective manner with having collaborative
nature with their suppliers and customers (Prova, 2019). Entity have mission which is to
effectively provide best services and best network to their consumers in order to effectively build
their trust and loyalty towards organisation.
Having highly skilled, experienced, talented and potential individual EE perform their
roles and responsibilities in the well defined manner and significantly aim towards satisfying
needs of customers with an aim to ensure their trust as to gain maximum competitive advantages.
By being most trusted communications company they committed to keep their consumers safe,
empowered and secure. Along with this as to successfully fulfil business and corporate standards
company maintain positive and healthy relationship with their supply chain and operator services
in a responsible manner. Thus, as per the above discussion it has been evaluated that it is one of
the most trusted brand in United Kingdom with having formative vision to deliver best services
and network to their consumers while supporting employment in country.
The impact of culture on managerial decision making in relation to international human resource
management
Decision making is most important process that has been undertaken by manager within
an organisation at any level. Decision making duly include estimation of the probability of an
outcome and how appealing those outcomes would be (Lertxundi, Barrutia and Landeta, 2019).
In context with, EE Limited it has been identified that top managers of company hold the
responsibility to undertake decision process. In this process first step is related to set managerial
objectives. Further manager search for alternative in order to fulfil organisational objectives next
step is related to comparing alternatives in a best effective manner. Next step in the process of
strategic decision making include the act of choice, in this manager select certain direction and
further implement the decision into real process. Last step involve follow up and controlling of
objectives in order to ensure that decision making process must be effective as to attend high
profit advantages. In context with present scenario, it has been analysed that in order to allocate a
call centre operation in Japan organisation is required to effectively identify impact of culture on
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managerial decision making process. In order to effectively define this process managers of
company undertake advantage of effective decision making as to evaluate culture impact upon
company decision making process in context with international Human Resource Management.
Figure :1The Managerial decision making process
It has been identified that cultural values act as an essential element of external factors
that have significant influence upon functioning of organisation. Culture is defined as a norm,
customs, and values and believes that guide individual behaviour in a society. According to the
present report it has been evaluated that respective organisation is required to effectively
consider culture in order to locate the call centre operation in Japan
Along with this, bit has been evaluated that most important characteristics of culture of
Japan is collectivism, masculine values, willingness to hard work as well as sacrifice and pursuit
for achievement. By ascertaining all these factors EE can effectively able to ensure long term
sustainability in the marketplace of Japan, as in this by employing labours from market company
also gain adequate loyalty and high performance in exchange of employment. In addition to this,
it has been evaluated that other characteristics of Japan culture is that country have formative
orientation towards harmony it duly reflects there course to avoid conflict. Thus, with the help of
these prospective respective organisation can effectively able to perform their business
objectives with having an established cooperative relationship.
Thus, as per the above mentioned discussion it has been evaluated that, culture of Japan
have strong and good impact upon the decision making process of company in context to
International human resource management (Sinha, B.C. and Mishra, 2019). As according to the
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discussion this is identified that one of the most important aspect of Japan culture is hard work.
This aid EE limited to accomplish their objectives and targets with teamwork by having multi-
skill work teams. In addition to this company can also have high hard working labour force that
effectively stimulates effectiveness of the managerial decision making in relation to International
Human Resource Management. Further by taking advantage of Japan culture respective
organisation can strengthen their International HR system by taking advantage of collective
decision making. Apart for this it has been evaluated that culture of Japan offer strong sense of
obligation to superiors and colleagues. This makes internal workplace structure of entity a strong
factor that effectively strengthens company profitability in terms of international business
operations.
According to the discussion this has been evaluated that, culture of a nation have
significant impact upon managerial decision making of an organisation in terms with
international HRM. As in order to ensure success at International platform an organisation is
effectively require to strengthen their workforce. As employees are termed as an most important
asset for an entity. Thus, managerial decision making significantly impact upon their
performance according to the evaluation it has been concluded that, culture of Japan can
significantly impact upon managerial decision making of EE Limited call centre operation in
respective country. But with having a strong and effective culture Japan offer many attractive
opportunities to EE that makes company to make significant increase in their profitability and
productivity index. This will aid entity to strengthen their International image that further
increases their goodwill around the globe in an attractive manner (Giauque, Anderfuhren-Biget
and Varone, 2019). With the formative assistance of positive culture Japan offer many
significant opportunities to respective entity that further benefit company to increase their overall
productivity and profitability level. However in order to overcome the negative impact of Japan
culture it is essential for EE limited to undertake best effective decision making in order to
provide effective appraisal system employees in respective country. As negative appraisal
system can duly affect emotions of employee that lead towards decreasing their performance
level in a significant manner. In this it is essential for EE managers to undertake appropriate
managerial decision making process in which they are required to have proper communication at
their workplace structure. This will allow them to have regular feedback from their employees.
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With a friendly conversation company can improve performance level of employees by
satisfying their needs in a best effective manner.
Thus, as per according to the evaluation it has been identified that culture of a country
have negative and positive impact upon managerial decision making in terms with international
human resource management. Thus, in order to locate a call centre operations in Japan EE
limited by satisfying needs of employees by offering them effective appraisal system, continuous
feedback and rewards can effectively able to have a collaborative and hardworking multi skill
work team those who benefit company with their hard working and effective performance. This
will make organisation to strengthen their International image in a best effective manner.
Cultural and HRM issues UK companies need to take into consideration when locating a call
centre operation in Japan
It has been analysed that there are different type of cultural as well as HRM issues that can
be faced by an entity that will further affect their organisational functioning. It is essential for
them to have proper evaluation of all these factors as to ensure high profitable ratio. As to ensure
smooth organisational process and effective accomplishment of goals UK companies like EE
limited are effectively required to evaluate overall cultural as well as HRM issues that will affect
their process of locating a call centre operations in Japan. By considering this entity can
effectively able to ensure their success (Zhu, 2019). As it allow entity to further formulate
effective strategies through which they can overcome the cultural and HRM issues in time
effective manner. Along with this company can also ensure competitive advancements by
analysing these issues as this further allow them to undertake use of strategically advance
strategies as to overcome the negative impact of these issues on organisational functions.
Mentioned below there are some certain cultural as well as HRM issues that are required to be
duly considered by EE limited while locating their call centre in respective country:
Cultural Issues
Mismanagement
Management can create cultural issues for EE Limited as the business practices that they
have in United Kingdom is not possible to give successful results in Japan. Thus, it may affect
moral and motivation of employees. In order to overcome this issue it is essential for EE limited
leader to effectively conduct employee survey in order to identify effective management
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practices as to promote healthy lifestyle of individuals and providing them best workplace
environment.
Language
Language barrier is one of the most important aspect and a cultural issue that may affect
organisational overall productivity ratio. In context with present scenario this has been analysed
that in order to locate call centre in Japan EE is limited is required to recruit local individual. It is
not possible that all workers speak same language as some are only comfortable to speak the
native language of country (Cafferkey and et. al., 2019). As company mainly headquarter in
United Kingdom thus communication meetings well take place in business English. This
significantly led towards creating number of issues for employees as they may face issues to
interpret information in a correct format. Along with this cultural preferences and idiomatic faces
can also lead towards creating confusion among them. In order to overcome the
misunderstanding it is essential for EE limited to make sure that all the employees are known to
one language and further provide them proper and adequate language training in order to make
sure effective functioning of business.
HRM issues
Compliance with Laws and Regulation:
This been evaluated that every country have different set of laws, regulation and rules
that are required by organisations to effectively perform in order to operate their functioning in a
best effective and legal manner (Sinha and Mishra, 2019). In order to locate their Call Centre in
Japan EE Limited is required to have effective and proper understanding of all the legal rules and
legislations that are necessary for the organisation to abide. In this they also hold responsibility
to identify every aspect that require legal laws with the help of this they can effectively able to
ensure business performance in legal manner.
Workforce Training and Development:
In order to operate their Call Centre functioning in Japan EE limited are also required to
recruit local individual thus in order to make them compatible with organisational operations and
functioning it is essential for company to provide them proper training and development. It has
been evaluated that individuals may get frustrated in terms of language and technology. This acts
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as major HRM issue that required to be effectively resolved as to ensure effective performance
of workforce. In this by offering employees with adequate workforce training and development
in each and every aspect company can ensure maximum production.
CONCLUSION
As per the above mentioned report it has been concluded that HRM is most important aspect
of any organisation while operating their functions in national or International platform.
Effective management of human resource will lead an entity to increase their overall profitability
and long-term advancements in a best effective manner. In this it is essential for an organisation
to identify employee needs and further satisfy them by providing effective appraisal system,
compensation benefits and feedbacks. In addition to this there are two different type of cultural
as well as HRM issues that can be faced by an entity while operating their business in other
country. As culture differ from one place to another thus by analysing these issues an
organisation can overcome them with the help strategic advanced techniques through which they
can further ensure high profitability and productivity.
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REFERENCES
Books and Journals
Horak, S., Farndale, E., Brannen, M.Y. and Collings, D.G., 2019. International human resource
management in an era of political nationalism. Thunderbird International Business
Review, 61(3), pp.471-480.
Zhu, J.S., 2019. Chinese multinationals’ approach to international human resource management:
a longitudinal study. The International Journal of Human Resource Management, 30(14),
pp.2166-2185.
Giauque, D., Anderfuhren-Biget, S. and Varone, F., 2019. Stress and turnover intents in
international organizations: social support and work–life balance as resources. The
International Journal of Human Resource Management, 30(5), pp.879-901.
Suder, G., Reade, C., Riviere, M., Birnik, A. and Nielsen, N., 2019. Mind the gap: the role of
HRM in creating, capturing and leveraging rare knowledge in hostile environments. The
International Journal of Human Resource Management, 30(11), pp.1794-1821.
Guttormsen, D.S and et. al., 2019, July. Definitions Matter! When Big Data Takes on Biased
Theory Building in International HRM Research. In Academy of Management
Proceedings (Vol. 2019, No. 1, p. 18646). Briarcliff Manor, NY 10510: Academy of
Management.
Desai, M.D., 2019. Study on International Staffing approaches and Pre departure
training. Journal of the Gujarat Research Society, 21(11), pp.512-517.
Sinha, B.C. and Mishra, M., 2019. International Human Resource Management: Paradox of
Integrating & Differentiating Global & Local HR Practices. Our Heritage, 67(10),
pp.531-545.
Gooderham, P.N., Mayrhofer, W. and Brewster, C., 2019. A framework for comparative
institutional research on HRM. The International Journal of Human Resource
Management, 30(1), pp.5-30.
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Farndale, E., Horak, S., Phillips, J. and Beamond, M., 2019. Facing complexity, crisis, and risk:
Opportunities and challenges in international human resource management. Thunderbird
International Business Review, 61(3), pp.465-470.
Lertxundi, A., Barrutia, J. and Landeta, J., 2019. Relationship between innovation, HRM and
work organisation. An exploratory study in innovative companies. International Journal
of Human Resources Development and Management, 19(2), pp.183-207.
Cafferkey, K and et. al., 2019. Perceptions of HRM system strength and affective commitment:
the role of human relations and internal process climate. The International Journal of
Human Resource Management, 30(21), pp.3026-3048.
Sacchetto, D., Cretu, O. and Morrison, C., 2019. International migration, labour mobility and
HRM.
Hansen, N.K., Güttel, W.H. and Swart, J., 2019. HRM in dynamic environments: Exploitative,
exploratory, and ambidextrous HR architectures. The International Journal of Human
Resource Management, 30(4), pp.648-679.
Prova, S.A., 2019. HRM Practices and Work Environment of United International University.
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