Comparative HRM Practices: UK vs. South Korea - [Course Code]

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International and Comparative HRM

TABLE OF CONTENTS
Introduction......................................................................................................................................1
TASK 01 (A)...................................................................................................................................2
Apply the Hofstede Model to the business environment in the UK and South Korea................2
TASK 01 (B)....................................................................................................................................5
Compare and contrast national employment systems in order to evaluate the HRM models,
policies and procedures, cultural, institutional and legal constraints in UK & South Korea......5
TASK 02..........................................................................................................................................9
Critically assess the importance of political ideology as an influence on government action,
policies and legislation and examine the role of management, trade unions and the state from a
comparative perspective in moving to South Korea from UK....................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
Expansion in the new markets is just common for different international businesses but the
decisions of expansion are being based on overcoming some of the barriers. In this, culture is one
of the important parts that help business to take effective decisions. The current report is based
on supporting the process of decision making that is related to the expansion of business to
different countries. The current study will utilise the Hofstede cultural analysis of the two
countries that include South Korea and the United Kingdom (UK). This country would utilise the
cultural differences on the basis of different factors. In addition to this, a brief analysis would be
done to analyse the national employment systems of both countries. Within this, it has been
assumed that FMCG Company is trying to expand to South Korea with the analysis of the
business environment.
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TASK 01 (A)
Apply the Hofstede Model to the business environment in the UK and South Korea
Hofstede Model is being described as the framework that describes different dimensions of the
cultures of the nation (Mascarenhas et.al. 2013). This model gives an analysis of the framework
of the business environment of two different countries. Below is the analysis of the business
environment of South Korea and the UK on the basis of several cultural dimensions.
Hofstede cultural dimensions of South Korea
Power distance: In this dimension, it deals with the fact that all Indians are not equal and it
expresses the attitude of inequality within the society. However, South Korea follows the
hierarchical structure that means each of the individuals has its place and that needs no sort of
Justifications. In South Korea, it reflects the inherent inequalities, being centralisation and
government is sometimes being autocratic.
Individualism: South Korea is being considered as one of the collectivistic society where
individuals have deep interrelationships with each other. The society fosters making stronger
relationships and overrides most of the rules and regulations. Each member takes responsibility
for their fellow members in the business (Hofstede dimensions, 2018). Business decisions are
being taken with the high consent of the employees that form the deeper relationships among
employer and the employees. In addition, decisions regarding hiring and promotion are being
taken with employees in groups.
Masculinity: South Korea is being considered as the Feminine society and focus of the
individual on work is to have a healthy living. People of South Korea values people, value
equality and quality in working lives of each other and the conflicts within the organisation are
being solved with the compromise and negotiation strategy (Hofstede dimensions, 2018). Several
businesses favour exact working hours and offering flexibility to the employees. The manager
plays an active role in decision making and overcoming conflicts among the employees.
Uncertainty avoidance: This dimension deals with the fact that is to control the future. However,
South Korea is one of the high uncertainty of avoiding countries that maintain rigid codes of
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belief and behaviour. In these countries, there is an emotional need for rules, where people have
the tendency to keep themselves busy and work hard with a passion for the aspects of money.
Businesses work with the objective of meeting stakeholder's satisfaction and also for making the
society that invites generations to survive.
Long term orientation: South Korea is one of the most pragmatic and long term oriented
societies where people live their lives by the guided virtues and with practical good examples.
The business serves for the durability of the business in terms of meeting with the direct needs of
the stakeholder and also plans for the generation to come (Venaik et.al. 2013).
Indulgence: Such dimension is all about defining the extent to which the people try to control
their desires and impulses. With a very low score, South Korea is being restraint as societies do
not pay much attention to the desires and control their gratification of desires. They feel that
meeting with desires is against the social norms and feel that indulging themselves is the wrong
kind of activities they perform.
Hofstede cultural dimensions of UK
Power distance: British people believed that inequalities within the in society are needed to be to
be reduced to become a liberal country. The UK is one lower rank in terms of power distance. In
business also hierarchical structure is being used for the convenience. Thus guides that people
must be treated as equal and fair decisions can be taken with the help of employees too.
Individualism: UK is one of the highest scores to promote the individualism beaten only by
some of the counties that include Australia and the USA. The British people are highly
individualistic and private people. Children at their growing age are being prepared and taught to
earn themselves and to be unique to contribute towards society (Taras et.al. 2012). Personal
satisfaction and meeting personal needs is one of the huge motivations for the employees in the
organisation.
Masculinity: the UK is one of the masculine societies that are highly success-oriented people.
People with such culture have the perception to live the ambition and work for themselves. All
people have the greatest tendency to work and live their dreams. Generally, the government also
plans for organising liberal policies that is comfortable for the people.
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Uncertainty avoidance: the UK has a low score of uncertainty avoidance to adopt the new day
and change according to the new day. British people are quite comfortable in ambiguous
situations and love to spread the information and knowledge that is better for society. In
Business, employees are quite comfortable with work situations and emerge according to the
changing and fluid environment.
Long term orientation: the UK generally has an intermediate score in terms of being long term
oriented. As the dominant culture in the preference of the British generally cannot be determined
and is not the majorly long term oriented cities (Krueger et.al. 2013).
Indulgence: British culture is one of the indulgent cultures where people are living life with fun
and enjoy own desires. British people have a positive attitude towards impulses and have the
tendency to meet with all the desires towards being optimistic. They generally place a higher
degree of giving importance to travel, leisure time and also spend money as per they wish
(Hofstede dimensions, 2018).
Figure 1: Hofstede culture dimensions score of South Korea and the UK
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TASK 01 (B)
Compare and contrast national employment systems in order to evaluate the HRM models,
policies and procedures, cultural, institutional and legal constraints in UK & South Korea
Employment systems are being governed as
Table 1: Comparison of national employment systems between South Korea and the UK
Basis of
comparison
South Korea UK
HRM
models
HR practices in Korea are using
performance-based systems that mean
performance is being improved in order to
increase business productivity.
Recruitments have been changed with
increasing global competition technology
is being adopted; lifetime job flexibility in
staffing is being performed. Also, doors
are being open for women to show their
productivity (Best Practices and
Performance-Based HR System in Korea,
2006). Businesses are trying to spend more
and more on training that would improve
the performances of the business.
Compensation is being provided on the
group work that increases the performance
of firms. In addition to this, 360-degree
feedbacks systems and better
compensation decisions are being taken
on employee performances. HRM mainly
Generally, businesses of the UK
uses the Best fit and Best practice
approach for the application of
effective practices of HR. For this,
the rewards system is being aligned
with the organisational strategy and
policies are being offered for
implementing better reward systems
for the employees (UK HR policies,
2018). It results in achieving the
competitive advantage within the
firms and also helps in delivering
highly motivated and committed
employees that work for the
betterment of the organisation.
However, reward systems are given
the best importance along with
these employees productivity lies
behind the best motivation offered.
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aims at cost reduction and increasing the
performances of the employees.
Policies and
procedures
 Article 32 of the constitution
governs all citizens that have the
right to work
 strictly follow of minimum wages
 Special protection to minors
 Following employment contracts,
collective bargaining, rules of
employment
 Follow of different employment
acts such as Minimum Wage Act,
Employee Retirement Benefit
Security Act, Act on the Protection
of Dispatched Workers, Act on the
Protection of Fixed-term and Part-
time Employees and the Industrial
Safety and Health Act (Jeong et.al.
2015);
 Giving opportunity for full time
and part time workers
 Minimum standards are allowed
that includes overtime, maximum
working hours, holiday work
allowances, night shifts
 Incentives are being equally
offered to both men and women
 No such restriction on managers
and directors
 Written employment contracts
between employer and employees
 The general process is being
followed to offer equal
opportunity, avoiding
practices of discrimination
and harassment
 The proper process followed
for staff retention and
termination
 Wages and salary is offered
as per job grades, positions
and has the fixed criteria for
appraisal (UK HR policies,
2018)
 Regular evaluation of
employees on the basis of
performances and rewards
and incentives are being
offered.
 Special rules of leaves that
include yearly leaves,
festive leaves, vacation
leaves, etc
 Benefits to employees in
terms of health insurance,
workers compensation, life
insurance, accidental
insurance
 Special reward system
designed in each
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 Weekly one day off and public
holidays
 Maternity and paternity rights
 Data protection act is being
formulated to protect the
information of employees
 Discrimination and harassment is
being strictly charged
 Protection against Illness and
dismissal (Jeong et.al. 2015)
 Employees have all rights to end
the employment contract
organisation to motivate
employees
Cultural
aspects
Individualism is not followed that might
lead to lower down the personal
satisfaction of the employee. Korea has a
difficult language that is very difficult to
be adopted
The UK has a liberal culture and no
such boundaries are faced to adopt
the culture as people are very
friendly and culture can be adapted
significantly.
Institutional
aspects
Changing economic policies such as the
rate of inflation that can reduce the
monetary policy that gives rises to lower
down the flow of capital and business
opportunities.
The UK has favourable support of
trade unions and councils that work
after the development of the
business and provide growth
opportunities to the businesses.
Legal
constraints
South Korea follows the civil law system
and does not recognise the federal system.
It gives some of the challenges to opening
new retail stores, pricing and
reimbursement for pharmaceuticals,
restrictions on the provision of legal and
professional services and restriction on IT
services (International Market Advisor.
2013).
For the start of business, it requires
to have the license and agreements
to set a suitable business and follow
all the norms and regulations to set
the new business. The UK has
favourable economic conditions but
sometimes there is huge pressure on
the inflation that can degrade the
opportunities of the business.
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As per the analysis of the comparison among South Korea and the UK, both have different
framework only similarities can be observed that includes the national system work for the
welfare of the employees. Policies and procedures are being designed for the satisfaction of the
employees and meeting with their personal needs. However, all the laws and regulations are
being designed for the benefits of the employees and always plan for achieving the objectives of
the organisation and increasing the efficiency of the organisation. In addition, both countries
have effective development of the economy with the following different factors.
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TASK 02
Critically assess the importance of political ideology as an influence on government action,
policies and legislation and examine the role of management, trade unions and the state from a
comparative perspective in moving to South Korea from the UK
Importance of political ideology
Political ideology is very much worthy for the society that helps in understanding the socialistic
point of view. Ideology is generally the belief about the economic, social and cultural affairs that
is being performed by the majority of people and group within the larger society. There are two
different wings that are being followed in the Political ideology. The left wing of the political
ideology is being concerned of equality, liberty, freedom and Fraternity. The Right-wing
includes the Hierarchy, authority and property (Political ideology, 2018).
It is necessary to have the political ideology to have a stronger political system and that is just
the imaginary phenomenon to bring betterment in the society. Such a phenomenon has nothing to
do with reality because people are not working for the objective of the common interest to bring
improvement in society (Mannheim, 2013). Increasing competition has enabled people to fight
for their own and think of their own objectives. But it is important to have such an ideology to
bring effective improvement in society.
Such ideology will help in improving the government action to think that how society can be
improved and what are the best ways to bring change in society (Carlen and Burton, 2013). It is
necessary for the government of the country to have the best economic system and have the best
form of government. It is effective for the government to think of the socialism that refers to
have an effective economic system and policies to support the smooth operations of such
economic systems (Rush, 2014). The political system can be improved with such ideology and
significant application of the strategies that can bring development in the parts of the economy.
The certain hierarchies can be formed that can be evolved with each other to bring change in
political actions.
Role of management
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South Koreans are generally disciplined and hardworking and are well educated to gain the
potential of the solution towards the problem. Generally, no such restriction is being levied on
the management and the directors to take part in the development of the business. Management
generally supports to provide necessary training and development to the workforce that would
help in achieving the business goals. Management generally focuses on bringing development in
employees by focussing on giving performance-based incentives and rewards (Bae, 2012).
Generally, management has the tendency to improve the performance of the group as people of
South Korea are very collectivistic and generally believe in taking group discussions.
From moving to South Korea to the UK, management has the fair employment policies that work
towards achieving the satisfaction and higher retention of the employees. Training is effectively
provided to the employee regarding the use of technology and also the government is making
high incentives to improve the economy of South Korea (Kim, 2012). However, management
plays a greater role in the development of employees and directing them towards organisational
goals.
Role of trade unions
In the UK, trade unions have greater support towards employee and their rights. They have the
decision making always in favour of the employees. In comparison with Korea, the UK has a
higher involvement in the trade union. But still, there are two types of trade unions ruling for
employee welfare that includes Federation of trade union and Korean Confederation of the trade
union (Kim and Bae, 2017). Members in Korean trade union have been gradually increased and
all are working for the betterment of the employees. Trade unions are adopting the policy of no
compromise that leads to development in satisfaction of the labour workforce to work
satisfactorily in the organisation.
Trade unions in Korea play a commendable role in shaping the role of the economy and follow
different activities of collective bargaining, promoting routine activities and solving the
industrial disputes. Unions have led to brought development in the employment growth and
increased the potential for business to take active participation in setting up the new business.
Firstly, the Korean Union is not corrupt and healthy as a comparison with the UK as the unions
remained in control of the State for a longer time (Räthzel and Uzzell, 2012). Union has achieved
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