Impact of Cross Cultural Differences on HR Activities

Running Head: CROSS CULTURAL DIFFERENCES
0
Cross Cultural
Differences
Student’s Details
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CROSS CULTURAL DIFFERENCES 1
Executive Summary
Cross cultural differences is a controversial but very important topic in multinational
companies and the following report discussed about the impact of cross cultural differences on
the HR activities. It is very important to maintain the cultural diversity policies in the
organization but sometimes it creates very bad impact on profitability of business and HR
activities which discussed in the following report.
The report particularly described about that facts which can create impact on the
recruitment and selection and training and development. These are the main activities which
performed by the HR managers on the daily basis. The report also mentioned the
recommendation which can be followed by the multinational companies in the case of any
difficulty in cross cultural management.

CROSS CULTURAL DIFFERENCES 2
Contents
Introduction......................................................................................................................................3
Recruitment and Selection...............................................................................................................3
Ethnic based recruitment..............................................................................................................5
Polycentrism.................................................................................................................................5
Training and Development..............................................................................................................5
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
Reference List..................................................................................................................................9

CROSS CULTURAL DIFFERENCES 3
Introduction
International companies increasing the business at high speed and there is no escape to
adapt cultural changes. Cultural diversity is very important topic to consider in company and it
has great impact on the activities of human resource management because HR managers recruit
and select new employees on the basis of diversity policies of the company (Hughes, 2012).
Every company has different management and leadership style, practices and policies related to
cultural diversity. Organizational policies on recruitment, selection, training and development
have been impacted by the cultural changes. To understand the impact of cultural differences, it
is very important to understand that what culture in the context of workplace is. Culture is a
quality of an individual which creates impact on the work such as language, arts, manner and
many more (Freeland, 2014). These differences impact the many HR practices. Cultural
difference also led to confusion, conflicts and ineffective communication among human resource
management team and other employees.
The following report will discuss about the cultural changes which creates impact on the
activities of human resources management. Main HR practices are recruitment, selection,
training and development. The report will also describe the complexity of cross- cultural
differences.
Recruitment and Selection
Cultural variables and HRM policies are the two sides of coin. Both are related to each
other. Every organization gets their employees from these policies. Every organizational
structure has impacted by the culture (Lambert, 2016). Culture has also created impact on the
style of recruitment and selection in the organization. The pattern of compensation and benefits
also depends on cultural differences. In every organization, employees are paid only on the basis
of cultural differences (Bauer, Erdogan, Caughlin, & Truxillo, 2018). For instance,
whichever country considers individualism as high, an employee can be paid on the basis of his
performance. This part is depending on individual performances or cultural differences (Khan,
2018).