Analyzing Cultural Theories and Their Implications for IHRM Policies

This report delves into the critical role of cultural theories in shaping International Human Resource Management (IHRM) practices. It begins by reflecting on the significance of cultural theories in understanding HRM policy variations across different countries and regions. The report examines various factors, including social, economic, cultural, and political influences, that impact HRM practices globally. It explores perspectives such as convergence, divergence, and crossvergence, highlighting how cultural norms can limit HRM flexibility in a globalized world. The analysis incorporates real-world HRM data from international datasets and academic journals, focusing on differences attributable to cultural factors. Furthermore, the report discusses the implications of cultural theories on IHRM, particularly through Hofstede's cultural dimensions, and examines how these dimensions influence recruitment, selection, and employee development processes. Finally, it provides practical recommendations for HR managers to navigate cross-cultural challenges in HRM, emphasizing the importance of cultural awareness in various HR functions.

First part:
Reflecting on the importance of cultural theories for IHRM
(approx 1000 words).
Reflect on HRM policies variation across
Countries and how Cultural Theories might
play a role
Follow up the lecture topic by reading the recommended texts and
articles -as specified in your hello.doc - and THEN reflect on why
HRM practice varies worldwide:
a) - present REAL and up-to-date HRM data on HR policies and
practices used across the world, (you can look at any countries/regions and
at any HRM functions, be it recruitment and selection; employee
development, employee relations etc...) proceeding from reliable international
DATASETS (e.g. CRANET; UNCTAD; OECD; ILO) and international ACADEMIC
journals. The focus here is on differences than can be attributed to cultural
differences- see below.
Writing (answer)
There are a large number of factors that are usually responsible for influencing g the
HRM practices and policies of different countries at different regions. These factors are
that of social, economic, cultural and political factors as well. Due to the large scale
globalization, there is flexibility among the human resource management across
countries, but the cultural norms however tend to limit them. It is said that the
industrial relations and policies often tend to change within the context of a particular
country (Jackson et al 2013). There are mainly three important perspectives that arise
out of the cultural cognitive pillar; they are the convergence, divergence and the
crossvergence. Religion is one of the major differences that influence the HR managers
in taking decisions who have to manage people from a widely diverse cultural
background. The term cultural polarization opposes the concept of cultural
homogenization which says that the western countries like Australia, Canada, USA
show a strong similarity in the HRM practices due to their strong anglo cultural roots.
Cross vergence must be inculcated in each and every work organization as it defines
fair organizational practice and helps in avoiding nepotism. The differences are only
present in the minds of people, their values and their principles. As far as Germany is

concerned, there were differences in the organization of certain manufacturing units
that were applicable for a certain society only. Hostile takeovers are however common
in France but it remains absent in Germany. This is because of the fact that there are
the cross share holding and regulatory regimes present in Germany. The HRM policies
that might work out well in one country may not be very much useful in the other. For
instance the pay for performance of the employees is very much effective in the united
kingdom but is not very significant in other country. Similarly the quality circle program
is prominent in Japan, whereas it is not very prevalent in any other country. Different
countries have different cultural and social set up and those influences and forms
different HRM policies. Like, Japanese companies usually spend huge money on the
social activities. This is relevant from the fact that Japan has the policy of life time
employment that is totally absent in USA. Another distinct feature see in the HRM
policy of France is that of Adoption leave policy (Xing et al 2016). This policy gives the
French workers a leave from work for adopting children of up to 18years of age. Apart
from this, the HRM policy also provides a working hour of 35hours per week which is
different from rest of Europe because of the fact that the French people are very much
specific in nature (Jackson et al 2013). They also enjoy five weeks of holiday per year
which forms a very important part of the French HRM policy. Another very recent
trend that France has brought in its HRM policy is providing equal opportunities to all
the employees irrespective of their disabilities as well (Do et al 2016). The HRM
policies of France are made keeping in mind strict attachment with the culture and
environment of France.
REFLECT And DISCUSS: What are the
implications of cultural theories for IHRM practice?
Can you explain/discuss the HRM differences presented earlier by using
cultural theories? Try to back up your discussion with academic literature (e.g.
Hofstede's; Paik et al's paper, special focus on Table 1).
Please note: No need to 'describe' Hofstede's theory in great length;
awareness and knowledge will be demonstrated by competent application and
integration with the HRM analysis.
Writing (answer)
As per the theory of Hofstede there are almost six dimensions of culture that can in
influence the International human resources management policy in all the places. They

are power distance index, individualism versus collectivism, masculinity versus
femininity, uncertainty avoidance index, pragmatic versus normative, indulgence versus
restraint. There is the influence of national culture seen in the process of recruitment of
the employees. If the recruiters are from places where the collectivist values are
prominent, then they will naturally stick to the relationship oriented recruitment
sources like personal referral, networking at job fairs. However if the recruiters are from
places where the individualistic values are of more importance then the recruiters will
not pay much attention to the personal contacts (Li et al 2015). Apart from this, the
HRM policies often are influenced by the kind of jobs that the applicants wish to apply
for. Selection process used by the recruiters also depends on the cultural influences a
great deal. The high performance oriented organizations often look set very high criteria
for the selection whereas the low performance oriented organizations will always select
bit easier and soft recruitment criteria. A good example is that of USA has individualistic
culture as a result of it, the organizations look for employees who are very much active
and can perform in the high competitive environment. On the other hand, the
collectivist country organizations will always look for applicants who are capable of
performing in a team.
Any recommendations?
In the light of your newly acquired cross-cultural
awareness, can you make some recommendations, in the
form of action points, to any manager in charge of
managing HRM across borders? Be HRM specific; e.g.
"when selecting/appraising/disciplining/dismissing etc...
employees in country X, please be aware
of.../avoid.../implement..."
Recommendations should proceed from the above discussion and
not be completely unrelated.
Writing (answer)
The HR manager must see to it that there is no biasness while recruitment of the
employees.
The interview process must also be very much justified, in other words, there must be a
fairness maintained within the recruitment procedure like that of setting up the interview
questions.
Reference

Xing, Y., Liu, Y., Tarba, S.Y. and Cooper, C.L., 2016. Intercultural influences on
managing African employees of Chinese firms in Africa: Chinese managers’ HRM
practices. International Business Review, 25(1), pp.28-41.
Li, Y., Zhang, G., Yang, X. and Li, J., 2015. The influence of collectivist human resource
management practices on team-level identification. The International Journal of
Human Resource Management, 26(14), pp.1791-1806.
Do, B.R., Do, B.R., Yeh, P.W., Yeh, P.W., Madsen, J. and Madsen, J., 2016. Exploring the
relationship among human resource flexibility, organizational innovation and
adaptability culture. Chinese Management Studies, 10(4), pp.657-674.
Jackson, T., Louw, L. and Zhao, S., 2013. China in sub-Saharan Africa: implications for
HRM policy and practice at organizational level. The International Journal of Human
Resource Management, 24(13), pp.2512-2533.