Impact of Culture on HRM Practices

This assignment delves into the profound impact of culture on human resource management (HRM) practices. It examines how cultural variations influence recruitment, selection, training, performance management, and employee engagement. The analysis draws upon academic research and case studies to illustrate the complexities and challenges of managing a diverse workforce in a globalized world.

Cross Culture

TABLE OF CONTENTS
PLAN...............................................................................................................................................3
RATIONALE FOR CHOICE..........................................................................................................3
EVIDENCE OF RESEARCH..........................................................................................................4
CASES INFORMATION................................................................................................................8
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................13

Topic: An evaluation of effective recruitment practices for international managers: A study on
hospitality industry (InterContinental Hotels Group PLC)
INTRODUCTION
Recruitment and selection of employees is identified as most crucial aspect of business
management that is having direct impact on organization's performance. In the globalized
market, companies are assessing employees from all over the world for attainment of distinct
business requirement. In this process, management has to carry out detail evaluation of culture
aspects of people while carrying international staffing practices. This report is going to evaluate
role of culture and other factors during overseas selection of employees with reference to
hospitality industry.
PLAN
The present study has been carried out to evaluate different aspects of international
recruitment and selection through which internal managers are able to select appropriate
approach associated with the recruitment and selection of expatriates. In this process, firstly
rationale for the choice of topic is mentioned by evaluating the need and requirement of
expatriates within hospitality industry (Dowling, Festing and Engle, 2008). In the section, role of
recruitment and selection tactics during assessment of overseas workers is also measured.
Furthermore, different aspects of recruitment and selection procedures have been examined with
the help of journals, books as well as case studies and thesis report is prepared that outlines
various element of international recruitment and selection. With some research works,
importance and effectiveness are also discussed. Further, detail evaluation of the impact of cross
culture factor is carried out to increase effectiveness of selection and recruitment process.
RATIONALE FOR CHOICE
The emergence of globalization has provided significant business opportunities to
different industries to expand business in new overseas market. It has reduced trade related
boundaries among countries. This approach has supported companies for the establishment of
mutual collaboration and smooth interaction with the various other companies and individuals to
attain business objectives associated with the revenue generation and brand establishment
(Wilden, Gudergan and Lings, 2011). With the faster pace internationalization, need of culturally
diversify workforce has significantly increased. Globalization has led to the increased
requirement of expatriates for the attainment of different business requirement along with
3

handling business client belongs from different culture. In the context of current business entity,
the diversity of ideas and expertise in their respective field from different cultural backgrounds
has been considered as an important element of business performance (Christensen Hughes and
Rog, 2008). To assess workforce from different culture and nations, companies associated with
hospitality business are using different approaches for the recruitment and selection of
employees for distinct business requirement. In this regard, Present topic has been selected to
evaluate the effectiveness different recruitment practices for the international manager through
which hospitality companies are able to adopt appropriate strategies in the process of
international recruitment and selection. The rationale behind selection of present topic is that a
hospitality firm has to manage and accomplish the requirement of guests associated with the
different culture therefore, business entity has to assess employees belong from different culture
to improve quality of services (Lee and et.al, 2009). The present research is going to present
different aspects of international recruitment and selection practices through which an hospitality
is able to acquire the best workers for company that have direct impact in the performance of
firm and quality of hospitality services.
EVIDENCE OF RESEARCH
Importance of international recruitment and selection
(Refer the reference set 1)
The emergence of globalization has provided various opportunities to business
organization for the expansion of business in new market place. As per the research of
Betancourt and Green (2007) it has found that these elements promote Cross cultural interactions
that lead various challenges and obstacles for the companies in form of language barrier,
variation in technological environment, foreign management philosophies as well as assessment
of political system. Present report is carried out with reference to the business operations of
hospitality industry and role of internal selection and recruitment process. In the process of
overseas business expansion, hotel groups formulate various ventures and contract with other
companies around the globe. For the attainment of distinct business requirement, employees are
hired from diverse culture with the specialization in their fields and expertise through which
company is able to deliver best services to visitors belongs from different cultural background
(Dowling, Festing and Engle, 2008). The selection of these expatriates is carried out with a
systematic process through which management can minimize the impact of language barrier,
4

cultural shocks, technological differences, political variation along with the issues that are linked
with different social philosophies on individual productivity and overall performance of
company.
International selection and recruitment provides a significant assistance to expand talent
pool of company through which business entity can assess wide range experts and professionals
from different regions of the world. By selecting local employees within overseas office and
branch of company, hospitality organization can reduce the cost of operations. It provides
significant support to management in order to reduce complexities within business operations
which have been occurred due to cultural and language barriers. As per the research of Dowling,
Festing and Engle (2008) it has been found that Bringing foreign workers within hospitality
company helps managers and other employees for building a deeper understanding about the
global business operations and management practices. The views of external employees about
products and services of hospitality firm have been found very effective to increase effectiveness
of product offering process along with the service quality that would play a crucial role during
getting long term success and profitability of company (Betancourt and Green, 2007). The
overseas recruitment and selection practices not only support organization for developing better
products but also that are playing a crucial role in building global brand value within the
overseas market places. This is because international recruitment and selection is identified as an
effective marketing tool that has found very effective for increasing awareness of brand or
company.
Categorization of employees in international recruitment and selection of process
(Refer the reference set 2)
In the process of overseas talent acquisition, categorization of employees is identified as
the most important aspect of international recruitment and selection of workers for the attainment
of distinct business requirement. Therefore, categorization of employees is mainly carried out
these sub factors such as Parent country national, Host country national and Third conndry
national. According to Gelfand, Erez and Aycan (2007), Parent country nationali includes those
employees which nationality of employees is the same as the organization. In this, nationality of
employees and company is same but employees are working in overseas brand or office of the
particular firm. For example: An individual of US origin is working in UK with US based
company.
5

In addition to that, Host country national includes such employees that are having
nationality of particular country and working in subsidiary of a multinational company in his
domestic country. For example, a Macedonian citizen who is working for a Slovenian company
in Macedonia. Apart from that, third country national is categorized such workers whose
nationality is neither that of the organization nor that of the location of subsidiary (Lee and et.al,
2009). For example, an Albanian citizen who is working for a Slovenian company in Macedonia.
In the process of international recruitment and selection, HR managers have to consider these
during the acquisition of workers for different operations related to hospitality business.
Evaluation of different approaches used in global staffing process
(Refer the reference set 3)
The selection of employees from overseas destinations is carried out by international
managers within hospitality business with the help of different approaches. Companies are using
different tactics as per the current business environment and market position along with need of
employees. In this process, long term and short term objectives are playing important role during
selection of best employees and acquisition of experts for different business needs. Therefore,
four kinds of recruitment and selection approaches are mainly considered by top management
such as Ethnocentric, Polycentric, Geocentric and Regiocentric.
According to Christensen Hughes and Rog (2008), ethnocentric approach is applied by
an organization for choosing employees from the citizens of the parent country for working in
host nations. With the help of this process, mainly higher-level foreign positions within business
entity are fulfilled by expatriate employees associated with the parent country. The primary
objective behind application of ethnocentric approach is that the staff from the parent country
will be able to represent the interests of the headquarters of hotel group with an appropriate
manner so as business is able to maintain quality standards in all hotels over the worldwide. It
plays important role for establishment of link with the parent country (International Recruitment,
2016). The recruitment process is carried out by following the four stages that include self-
selection, determining a candidate pool, technical skills evaluation, and making a mutual
decision. The first stage is self-selection that involves all decision of an employee associated
with his future course of action in the international arena. In the next stage, the employee
database is prepared by HR department and international manager as per the requirement of
manpower requirement for international business operations (Gelfand, Erez and Aycan, 2007).
6

Then the evaluation of database is carried out for selection of the best and most suitable persons
for different global assignments by conducting the technical skills assessment. At the end, the
best candidate is selected for different overseas goals as per the distinct business objectives.
As per the research of Gomes (2016) it has been found that Polycentric approach is
identified an effective strategy of limiting recruitment to the nationals of the host country (local
people). The technique is selected by international manager for reducing the cost of foreign
operations. In the context of hospitality business, this approach has been found very effective in
the cost control process. The primary objective for handing over the management to the local
employees is that business entity can increase its understanding about the local market
conditions, political rules and regulation along with cultural and legal requirements with the help
local people (Lee and et.al, 2009). In the context of hospitality business, many companies are
developed a localized HR department. In this regard, Many international companies operating
different business operations in advanced countries like Britain and Japan have been adopted this
approach to increase overall performance of business.
Apart from that Christensen Hughes and Rog (2008) have stated that geocentric
approach is considered as most effective approach for recruiting experts of different field for the
positions available in within business entity irrespective of their nationalities. This approach is
mainly adopted by big multinational companies like IHG group in order to utilize globally
integrated business strategy. Since the HR operations are constrained by several factors like
political and ethical factors and government laws, it is difficult to adopt this approach. This
approach has been found very effective for ensuring the considerable success with reference to
several political and ethical factors as well as government laws (Betancourt and Green, 2007).
For international recruitment, hospitality companies are mainly considered manpower agencies
or consultants that are having international connections and significant source for accomplish
manpower needs of multinational companies. The effectiveness of this is increased by utilization
of the internal source of recruitment in which global companies’ makes efforts to develop an
internal database of employees along with tracking system for employing best employees for
different job positions.
According to Gomes (2016), Regiocentric Approach, company's international business
is divided into international geographic regions. The regiocentric approach is mainly applied
through managers related to different countries and working within the particular geographic
7

regions of business. Although the managers operate relatively independently in the region and
they are not visit the headquarters of business organization (Dowling, Festing and Engle, 2008).
The regiocentric approach has provided significant results to the company that is having distinct
product strategies so as natives of the region are hired as per their requirement.
CASES INFORMATION
Internationalization has provided new opportunities for business expansion through
which companies are able to expand business in overseas market to increase business
performance and profitability. Present study is carried out to examine several factor associated
with international recruitment and selection process within hospitality industry. Hospitality
industry is the customer oriented service sector that demands the intimate and close connections
with their clients and patrons so as management has to hire wide range of employees for
attainment of needs of business clients. Furthermore, management has to manage requirement of
highly skilled and tactical workers as per the requirement of distinct overseas projects of
hospitality. Therefore, it is very essential for the management to consider all the factors
associated with recruitment of expatriates. This report is prepared to assess different element of
global staffing process that have direct impact on growth and profitability of business.
Furthermore, this report is carried out detail evaluation of various factors that have been
considered as major cause of failure of expatriates’ selection process.
Evaluation of the factor affecting global staffing process
(Refer the reference set 4)
According to Moran, Harris and Moran (2011), it has found that International firms have
to manage certain laws and regulations for handling several domestic and international
regulations. In this regard, political and legal factors are having significant impact on HR
regulations and laws that are vary among countries that create great impact on international
recruitment and selection process. For example in the Western European countries, different laws
associated with the labor unions and employment make it difficult to reduce the number of
workers due to business entity has to huge payment to former employees (Gomes, 2016). Apart
from that Equal employment legislation exists to varying degrees that leads negative impact on
hiring process of hospitality staff from overseas destinations. In the some countries, there are
appropriate laws to address issues such as employment discrimination and sexual harassment.
8

Apart from that economic factor is playing important role during overseas recruitment
process within hospitality companies. Different companies are having different economic system
that has influenced overall economic growth and opportunities for new businesses. In this
context, it has evaluated that the many lesser-developed nations are receptive to foreign
investment for creation of the jobs for their growing populations (Dowling, Festing and Engle,
2008). Therefore, global firms are often obtaining significantly cheaper labor rates in these
countries as compared to Western Europe, Japan as well as United States. Apart from that,
political instability can lead to situations in which all the assets of foreign firms are acquired by
public authorities. Furthermore, the absence of good infrastructures is also increased the
difficulties for managers who are working international assignment. These factors are having
significant impact during the selection of employees for international business projects.
As per the views of Hofstede (2011), Cultural factors are playing important role during
international selection and recruitment process. In this regard, Hofstede cultural dimensions
approach has been found very effective in evaluation of impact on culture during selection of
expatriates. According to this approach, the dimension of power distance has been found for
identification of inequality among the people of a nation. For example: In countries like
Germany, the Netherlands and United States, there is a smaller power distance that reflects less
inequality (Betancourt and Green, 2007). On the other hand, other countries like France,
Indonesia, Russia, and China there are greater status and authority differences addressed between
superiors and subordinates. It directly affects the recruitment and selection policies of company
in different countries. A more autocratic approach to managing is more common in most other
countries that create significant impact on perception of employees working in hospitality
business. Another dimension of Hofstede is individualism that determines the action of
individuals in different prospective. According to this approach, people in Asian countries are
identified as less individualistic and more group-oriented where there is high individualism
addressed (Hughes and Rog, 2008). This approach plays important role in evaluation of level of
competition among people within a country that is having vital impact in international selection
and haring process.
Tung and Verbeke, (2010) have stated that the cultural dimension masculinity/femininity
is examine the degree of “masculine” values prevail over “feminine” values. Masculine values
are mainly associated with the assertiveness, performance orientation, success along with
9

competitiveness. On the other hand, feminine values consists quality of life, personal
relationships with other individuals, and caring. These elements are greatly influenced perception
of people along with attractiveness of different jobs that are located in overseas destinations
based on hospitality business.
Hofstede (2011) stated that the fourth dimension is uncertainty avoidance that influences
preference of people during working in another country that could be structured or unstructured
situations. A structured situation is addressed as approach in which clear rules are established to
influence act of people that is mainly identified in Japan, France, and Russia. In the contrary,
people who are living in Hong Kong, the United States etc. are having more “business energy”.
Both these element influence global staffing process of hospitality firms.
The last dimension of this approach is termed as long-term orientation that determines the
values of people who are giving major emphasize on the future. On the other hand, short-term
values are focusing on the present and the past (Gelfand, Erez and Aycan, 2007). Long-term
values include thrift and persistence where as short-term values are mainly associated with the
respecting tradition and fulfilling social obligations that would have direct impact on attitude and
behavior of employees within different job location.
Elements that could act as a causes of failure of international recruitment and selection
process and their impact on hospitality firm
(Refer the reference set 5)
As per the study of Takahashi, Ishikawa and Kanai (2012) it is found several factors that
create negative impact on expatriates along with efficiency of global staffing process. In this
regard, family is termed as most crucial element factor that leads significant impact on stability
of an individual at overseas job locations. In addition to that improper clarification of job roles
and responsibilities along with poor work culture and work environment also creates negative
perception among overseas employees about Hospitality Company. Furthermore, culture
discrimination, unequal growth opportunities etc. are acting as major reasons of global staffing
process. In addition to that culture shock leads the sense of loss of deprivation in relation to
friends, status, profession etc.; Feeling rejected by members of new culture; Anxiety about
‘foreign’ practices and etc. are also building negative perception about company.
The entire above mentioned element leads negative impact on international recruitment
process within hospitality business that results early returns and nonperformance (Shen and et.al,
10

2009). It also creates adverse impact on company in the form of wastage of resource and
expenses made by company for training and development of an individual for handling different
kind of hospitality operation.
Effects of cross cultural training on Expatriates
(Refer the reference set 6)
According to (Qin and Baruch, 2010), Increased cross cultural interactions has found
very effective for hospitality firm in which an resourceful training programs is scheduled by
company for the enhancement of the skills and talents of their native employees and expatriates
working in the organization. It increases understanding of new employees about new work
culture and business practice along with perception of other staff member belongs from different
cultural background. On the other hand Takahashi, Ishikawa and Kanai (2012) stated that
performance and results of the employees can be varied among employees associated with
different regions. This approach supports employees to increase their understanding about
particular culture.
CONCLUSION
As per the above evaluation, it can be concluded that international recruitment and
selection of employees within hospitality business is identified as most crucial part of business
management in different marketplaces. This report has found that success of global staffing
process is greatly influenced by different cultural, political and economical factors.
11

REFERENCE
Reference set no. 1
Betancourt, J. R. and Green, A. R., 2007. Cultural competence. Immigrant Medicine: Text with
CD-ROM.
Dowling, P., Festing, M. and Engle, A. D., 2008. International human resource management:
Managing people in a multinational context. Cengage Learning.
Reference set no. 2
Gelfand, M.J., Erez, M. and Aycan, Z., 2007. Cross-cultural organizational behaviour. Annu.
Rev. Psychol. 58. pp.479-514.
Reference set no. 3
Christensen Hughes, J. and Rog, E., 2008. Talent management: A strategy for improving
employee recruitment, retention and engagement within hospitality organizations.
International Journal of Contemporary Hospitality Management. 20(7). pp.743-757.
Gomes, S., 2016. Recruitment and Selection (International Staffing). [Pdf.]. Available through:
<https://xisspm.files.wordpress.com/2012/02/chap-4-recruitment-and-selection.pdf>.
[Accessed on 6th January 2016].
International Recruitment. 2016. [Online]. Available through:
<http://www.whatishumanresource.com/international-recruitment>. [Accessed on 6th
January 2016].
Reference set no. 4
Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online readings
in psychology and culture. 2(1). pp.8.
Tung, R.L. and Verbeke, A., 2010. Beyond Hofstede and GLOBE: Improving the quality of
cross-cultural research. Journal of International Business Studies. pp.1259-1274.
Reference set no. 5
Shen, J. and et.al, 2009. Managing diversity through human resource management: An
international perspective and conceptual framework. The International Journal of Human
Resource Management. 20(2). pp.235-251.
Takahashi, K., Ishikawa, J. and Kanai, T., 2012. Qualitative and quantitative studies of
leadership in multinational settings: Meta-analytic and cross-cultural reviews. Journal of
World Business. 47(4). pp. 530-538.
Reference set no. 6
12

Qin, C. and Baruch, C., 2010. The impact of cross‐cultural training for expatriates in a Chinese
firm. 15(3). pp.296 – 318.
Others
Lee, D.M. and et.al., 2009. The European male ageing study (EMAS): design, methods and
recruitment. International journal of andrology. 32(1). pp.11-24.
Moran, R. T., Harris, P. R. and Moran, S. V., 2011. Managing cultural differences: global
leadership strategies for cross-cultural business success. Routledge.
Wilden, R., Gudergan, S. and Lings, I., 2010. Employer branding: strategic implications for staff
recruitment. Journal of Marketing Management. 26(1-2). pp.56-73.
13