Analyzing Cultural Dimensions and HRM Strategies in Business

This report analyzes the impact of cultural dimensions on human resource management (HRM) in a globalized business environment. It explores various strategies for managing human resources across different cultures, focusing on the importance of understanding cultural differences to enhance performance appraisals and achieve international competitiveness. The report discusses key concepts such as ethnocentric, polycentric, regio-centric, and geocentric approaches to international staffing and highlights the influence of cultural dimensions like uncertainty avoidance, power distance, masculinity, and individualism/collectivism on managerial practices. It emphasizes the need for companies to balance global strategies with local adaptations, considering factors like local norms, values, and industrial relations. The report concludes by emphasizing the importance of organizational culture and its impact on employee performance and overall business success in a cross-cultural context, referencing relevant research and studies.

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Strategies for Human Resource Management
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In today’s competitive business world, it is essential in companies for employees to maintain
their performance and working effortlessly. Organisations praise employees through
performance appraisals where in some or the other way, it is impacted by the cultural
dimensions across the world due to globalisation (Jacobs, et al., 2014). It is necessary for
companies to manage across cultures for effective operations and gaining competitive
advantage in a particular country an organisation is working on. The companies have to meet
the challenges of globalisation in business by using an approach for effective and efficient
working. There is a development of unique strategies by facilitating factors in relation to
different cultures (Selvarajan & Cloninger, 2012). These factors include continual demand
for differentiated products by local customers, global diversity in industry standards,
difficulty in global organisations management, importance of insider in relation to customer
where they prefer to buy locally, and lastly, allowing subsidiaries as required for using talents
and self-abilities unconstrained by headquarters.
In cross-culturalism, two terms are defined, simplification and parochialism; simplification
defines exhibition of same orientation towards groups with distinct cultures whereas
parochialism defines to see the whole universe through self-perspectives and self-beliefs.
There are similarities in cross-cultural which are no possibility of doing business in the same
way at every location globally, and strategies and procedures used for working properly at
home is not possible to adopt overseas without modifications. For instance, Russia and the
US, similarities defined in both these countries based on cross-culturalism are
communication, traditional management, networking activities, human resources, and
organisational behaviour modification (Peretz & Fried, 2016). However, the differences
shown in relation to this term involves compensation, wages, equity, pay, maternity leave and
others where evaluating criteria shows the importance of employees. A good example of
increase in cultural differences is China, India, France, Russia, and Arab countries mainly
both positively and negatively which impacts the performance appraisals of employees in
relation to cultural dimensions (Karyeija, 2012).
As per the argument given by Porter (1990) showed that based on these cultural dimensions,
the factor majorly impacting the performance of a company is its future growth and
international competitiveness in global markets which requires skilled human resources (HR)
for handling operations and manages the expansion. The management of HR internationally
differentiates self from domestic through dealing with large uncertainty amount, greater
complexity, and higher operating risk level (Hofstetter & Harpaz, 2015). However, the

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functions are basically similar but differentiation is based on performance. It is essential for
global companies to determine balance between local companies’ imitation and making self-
path (Aljerjawi, 2016). Other than this, it is essential to have knowledge and understanding
about local values, norms and assumptions for making decisions based on respecting and
ignoring while providing competitive edge among local competitors. This impacts the
performance appraisals of an organisation along with employees as well across the globe.
Based on this, four approaches are used in international staffing which are ethnocentric,
geocentric, polycentric, and region-centric.
Performance appraisals involve international reward systems for an employee in companies
globally while integrating processes, policies and practices based on employees considering
contribution, competence, skill and their worth in the market. This is related with the strategic
business goals and overall strategy of staffing as per using approaches (Dusterhoff, et al.,
2014). It involves allowances, salary, benefits and taxation for praising employees in global
companies while considering the impact of cultural dimensions. Based on divergence, it was
believed by Hofstede (1991) that differences in cultures impacts the managerial approaches
among companies operating across the globe. Therefore, the cultural dimensions in relation to
varying of employees and managers for the purpose of performance appraisals include
uncertainty avoidance, power distance, masculinity, and individualism or collectivism
(Reddy, 2011).
In international human resource management, cross-cultural requires cultural values to be
taken care of in the companies where one individual’s perspective differs from another. Also,
other than cross-cultural dimensions, performance appraisals of an organisation and its
employees is also impacted by the internal and external factors in the market across the world
where it is essential to understand uniqueness of every country universally in relation to
industrial relations systems, employment structure and human resources deployment (Ahmad,
2012). Moreover, organisational culture also shifts from industry to another, country to
country while showing difference in the characteristics of workforce diversity. Based on the
above observations and analysis, it is concluded that varying of organisational culture creates
both positive and negative impact on the workplace, employees and its performance
appraisals due to cross-cultural dimensions in companies across the globe.

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References
Ahmad, M. S., 2012. Impact of organizational culture on performance management practices
in Pakistan. Business Intelligence Journal, 5(1), pp. 50-55.
Aljerjawi, K., 2016. CULTURAL DIMENSIONS’ IMPACT ON PERFORMANCE
MANAGEMENT IN THE UAE MARKET. INNOVATIVE JOURNAL OF BUSINESS AND
MANAGEMENT, 5(3), pp. 62-71.
Dusterhoff, C., Cunningham, J. B. & MacGregor, J. N., 2014. The effects of performance
rating, leader–member exchange, perceived utility, and organizational justice on performance
appraisal satisfaction: Applying a moral judgment perspective. Journal of business ethics,
119(2), pp. 265-273.
Hofstetter, H. & Harpaz, I., 2015. Declared versus actual organizational culture as indicated
by an organization's performance appraisal. The International Journal of Human Resource
Management, 26(4), pp. 445-466.
Jacobs, G., Belschak, F. D. & Den Hartog, D. N., 2014. (Un) ethical behavior and
performance appraisal: the role of affect, support, and organizational justice. Journal of
Business Ethics, 121(1), pp. 63-76.
Karyeija, G. K., 2012. The Impact of Culture on Performance Appraisal Reforms in Africa:
The Case of Uganda's Civil Service. Asian Social Science, 8(4), pp. 159-174.
Peretz, H. & Fried, Y., 2016. The Link Between Performance Appraisals and Culture: An
Examination Across 21 Countries. [Online]
Available at: https://nchra.shrm.org/news/2016/02/link-between-performance-appraisals-and-
culture-examination-0
[Accessed 20 April 2020].
Reddy, A., 2011. CULTURAL DIMENSIONS & IMPACT ON PERFORMANCE
MANAGEMENT. International Journal of Multidisciplinary Research, 1(6), pp. 300-311.
Selvarajan, T. T. & Cloninger, P. A., 2012. Can performance appraisals motivate employees
to improve performance? A Mexican study. The International Journal of Human Resource
Management, 23(15), pp. 3063-3084.

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