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Cross-cultural Management of IHRM 代寫

 
 
Cross-cultural Management of IHRM
 
 

 
Table of Contents
Introduction. 3
1.0 Cultural differences and conflicts during cross-cultural operations. 4
2.0 IHRM of cultural difference at the core. 5
3.0 Cross-cultural management of IHRM: Cases of P&G and Lenovo. 8
Conclusion. 9
Reference. 10
 
 

 

Introduction

The globalization of the economy gives greater significance to understand how to operate more effectively for multinational corporations. As an important aspect of the business operation, human resources management, in particular international human resource management, has been taken increasingly seriously (Palich et al. 1995). In the past few years, a lot of people are trying to identify the linkage between human resource management and strategy, trying to understand the role of national or local human resources management in improving organizational effectiveness. Culture, as an exogenous factors in international human resource management, has a certain impact on all aspects of international human resource management practices, thus to produce pivotal role of transnational corporations (Stone, 2007). A lot of information from the transnational business practice clearly shows that, in the process of transnational business, there are differences and particularities in the management, of which the basis is the nation’s cultural differences (Antia et al. 2007). When the management theories and concepts a country created beyond their specific cultural environment, its effectiveness will be greatly limited because the cultural environment has changed. This essay will discuss the cross-cultural management of IHRM. This essay will firstly analyze the cultural differences and cultural conflicts in IHRM. Following this, it will discuss the IHRM of cultural difference at the core. Finally, this essay will take the case of P&G to illustrate the cross-cultural management.

 

1.0 Cultural differences and conflicts during cross-cultural operations

International companies in cross-border operations are in such a different cultural background and geographical environment, which will inevitably be encountered with unprecedented challenges. The objective existence of cultural differences is bound to cause a clash of cultures in the enterprise, thus becoming the major challenge of the multinational enterprises. David A. Felix believes that almost all big failure of the multinationals is because of the ignoring of subtle understanding of cultural differences. In such an multinational enterprise, the managers from different cultural backgrounds, due to different values, ways of thinking and habits style, tend to have different attitudes towards some basic issues of the business, such as business objectives, market selection, selection of raw materials, management, style of work, job scheduling and understanding of the importance of the job, the demand for change, and so on, so as to bring hidden crisis of the business operation (Adlar, 1991). Therefore, during the cross-cultural management, the communication between different cultures and fusion is inevitable.
The cross-cultural conflict refers to the process that cultures of different forms or cultural elements are mutually exclusive against each other. The cross-cultural conflict includes two aspects: the multinational companies operate in other countries when the cultural values ??of the host country conflicts; the conflict within an enterprise due to employees belonging to different cultural backgrounds countries. When the multinational enterprises operate, the organizational structure, technology and methods, decision-making, the control program of different countries has been basically convergence. However, employees from different cultural backgrounds make the cultural differences become an important factor to affect the management effectiveness of managers, giving managers management difficult. Therefore, cross-cultural conflict becomes a core issue for multinational companies operating in the implementation of the growth strategy that cannot be avoided. Many instances show that once multinational companies cannot acclimatize themselves to the diverse cultural backgrounds, cultural conflict occurs, eventually leading to the failure of multinational operations.
Many scholars have carried out studies in the cross-cultural management since the early 1970s. Hofstede (1983), after nearly 11 years’ efforts, found the differences in the behavior and attitude of the managers of different cultures and countries. On this basis, he continued to expand the research, and put forward the famous cultural differences in five dimensions: power distance, individualism / collectivism, masculine / feminine, uncertainty avoidance and temporal trends (Hofstede, 1991). Hofstede made the assertion that the so-called International Business Management is essentially the cultural issues. Edward Hall (1976), the famous human cultural sociologist, proposed the high scenarios culture and low scenarios culture according to the information transmission and accuracy and clarity of reception in people’s communication process, and tried to use this framework to illustrate the characteristics of the people of different cultures in commercial activities. Dowling believed that the cause of complexity factors of the international human resource management include six areas: involving more human resources activities, needing a broader perspective, more participating in the personal life, stressing the change in the proportion of expatriate and local staff, the risks encountered as well as external influences (Wong & Kenneth, 2000). Many companies have underestimated the complexity of the international operation, and a lot of facts proved that failures in the international environment usually have a close relationship with the poor performance of human resource management (James, 1966). One of the factors that cause or regulate the difference between the international human resource management and domestic human resource management is the cultural environment.

2.0 IHRM of cultural difference at the core

When a company operates in another country beyond the boundary of its country, whether the management concepts and methods which are proved to be effective in the home country can be outputted unchanged to another country as funds or equipment? Is there a generally effective management theory and management principle in any country or in any society? This is not just a theoretical assumption need to verify, it is also the issue that the multinational companies urgently need to address during the global operating activities (Balo?lu, 2011).
Despite the scholars take different viewpoints in cross-cultural studies, they now generally consider that the insensitivity to cultural attitudes and behavior due to ignorance or misguided understanding is not only inappropriate, but often leads to the failure of the international business (Lucas, 2006). Therefore, it is very critical to have the awareness of cultural differences for the company's headquarters as well as the host country's human resource management. International human resource management is actually composed of three dimensions: (1) human resource management activities, which includes the acquisition, allocation and utilization of human resources; (2) three countries concerned with the international human resources: the host country, the home country and a third country; (3) three kinds of employees of the multinationals: the host country employees, employees of the home country and a third country’s staff. The so-called international human resource management is the interaction between the three dimensions of human resource management activities, the types of employees and the country type. In three dimensions above, in addition to human resource management dimension, the division of the remaining two dimensions implies the recognition of cultural differences and their impact on employee behavior patterns.
The IHRM of cultural difference at the core is reflected in a variety of aspects, this essay will discuss the employee hiring, performance management, compensation management and employee training in details. A multinational company's human resources manager should use the hiring process adapting to the local labor market, and comply with the labor laws of the host country. Multinational companies may need to take advantage of local employment agencies to find skilled employees and pay the adequate remuneration in order to attract highly qualified staff to leave the local enterprise. At the same time, multinational companies should employ their expatriate employees. If the multinationals employ the expatriates, they need to carefully select the appropriate personnel (Couto & Vieira, 2004). Expatriate staff should be able to have the ability to work with colleagues and employees who may be very different from their own cultural background, to withstand the loneliness of living and working in a foreign country, but may also need to be able to handle their own family in a strange environment facing all kinds of difficulties and pressures. Multinational companies on employee performance appraisal policy should consider the following aspects. First, it is necessary to objectively estimate the degree of difficulty of the expatriates working environment. For example, U.S. multinational corporations, the difficulty of the staff workers sent to China is clearly bigger than the difficulty of the work of the employees sent to the UK. Therefore, the expatriates’ evaluation scale in performance appraisal in these two countries should be different. Second, the evaluation should be local views based, supplemented by evaluation of the company headquarters. Third, if the company headquarter is responsible for determining the final official results of the evaluation, it is best to seek the views of staff who works in the target countries and regions, this will reduce the evaluation deviation. Fourth, according to the characteristics of the culture of the workplace of expatriate employees, the company's appraisal standards make the appropriate changes to enhance the adaptability of the evaluation system. For the multinational corporations, the external equity and incentive compensation of the remuneration of employees are facing some new problems. Due to the difference between the prices levels of different countries, the employees need to be paid in order to maintain the standard of living in the country when the cost of living is different (Miller, 1993). Multinational companies to solve this problem implement the company-wide uniform basic wage compatible with the nature of the work, and then according to the specific circumstances of the employees in the countries and regions, make a variety of special subsidies to achieve pay equity. The multinational corporations also conduct the culture training on the employees, especially the cultural sensitivity training in many forms.

3.0 Cross-cultural management of IHRM: Cases of P&G and Lenovo

Since its inception in 1837, P&G has established branch offices in more than 80 countries and regions around the world, and becomes a worldwide famous multinational company with more than 130,000 employees. P&G has a number of subsidiaries, and has achieved great success in business. This success is inseparable from the cross-cultural human resources management. The focus on the combination of human and culture is the key to cross-cultural human resource management. After recruiting the right staff, P&G does not directly inculcate the own company culture, but to take the effective staff training combined the cultural characteristics of the host country subsidiary. Science the employees stepping into P&G, the training project will run through the entire process of career development. This selection mechanism makes P&G organically combine the culture of subsidiaries and cultures of the parent country, and conduct the cross-cultural management. Putting emphasis on staff development and cultural exchange, P&G helps employees to realize their value; at the same time, P&G has also made its own success and achieves economic benefits.
Another case of Lenovo illustrates the importance of cross-cultural management during the international human resources management. On December 8, 2004, Lenovo Group acquired the Personal Computing Division of IBM, becoming the third largest PC vendor in the world with annual income of more than ten billion dollars. The resources of Lenovo and IBM's PC combined, but this not equal to the fusion of talents. Because the two companies are geographically located in the eastern and western hemispheres, and there are great differences of its corporate culture, human resources philosophy and management style and many other aspect. The talent of different cultural background and value orientation is a great challenge for Lenovo’s future human resources management, but also the key to the success of Lenovo's international business development. In the face of the enormous cultural differences, Lenovo mainly take a few practices. Firstly, based on its own development strategy, Lenovo makes it clear how global manager is needed. Then Lenovo selects the employees with the appropriate quality of culture according to the internal management mechanism, and provides experience to complement their current lack of talent. For the individual characteristics and experiences, Lenovo designs corresponding cultural experience to cultivate the ability to adapt to cultural globalization. From a corporate point of view, the selection of the right people, and to provide the right experience, is an effective way to develop globalized managers. Lenovo Group has achieved a major breakthrough in its process of internationalization of human resource management, which should be attributed to its unique international human resource management tools.

Conclusion

To sum up, from a global strategic focus, the cross-cultural management reflects the impact of national culture on organizational functions (Eylon, 1999). Multinational companies’ cross-cultural management must firstly examine the management of different cultural backgrounds, to understand people of different values, different behavior, and different ways to motivate, to coordinate the impact of cultural differences on the management of human resources. Although cultural differences’ objective existence indeed brings obstacles and difficulties to multinational companies to enter the international market and to participate in international competition, it is precisely because of the cultural differences, to open up the market and the concept of innovation to provide a wide range of space and more opportunities for the enterprise (Harris & Moran, 2000). Therefore, enterprises, in the implementation of cross-cultural management, should be familiar with and understand the cultural differences of the international market on the basis of the development of the science of global strategy, to grasp the cultural opportunity to enter the international market, so that enterprises can surprise move, firmly grasp the initiative in the competition of the market.

 

Reference

Adlar, N. (1991), International Dimensions of Organizational Behavior, Boston, PWS Kent
 
Antia, J., Lin, B. & Pantzalis, C., (2007), Cultural distance and valuation of multinational corporations, Journal of Multinational Financial Management, 17(5): 365-383
 
Balo?lu, M. (2011), A descriptive study of individual and cross-cultural differences in statistics anxiety, Learning and Individual Differences, 21(4): 387-391
 
Couto, J. & Vieira, J. (2004), National culture and research and development activities, Multinational Business Review, 12(1): 19-36
 
Eylon, D. (1999), Exploring empowerment cross-cultural differences along the power distance dimension, International Journal of Intercultural Relations, 23(3): 373-385
 
Hall, E. (1976), How Cultures Collide, Psychology Today, 67-76
 
Harris, P. & Moran, R. (2000), Managing Cultural Differences, Reed Educational & Professional Publishing Ltd
 
Hofstede, G. (1983), The Cultural Relativity of Organizational Practices and Theories, Journal of International Business Studies, 14(2):75-89
 
Hofstede, G. (1991), Cultures and Organizations, Harper Collins Publishers
 
James, L. (1966), Cultural Analysis in Overseas Operations, Harvard Business Review, 3, 106-114
 
Lucas, L. (2006), The role of culture on knowledge transfer: the case of multinational corporations, The Learning Organization, 13(3): 257-275
 
Miller, V. (1993), Guidelines for International Trainers in Business and Industry, Boston: International HRD Press
 
Palich, L., Hom, P. & Griffeth, R. (1995), Managing in the international context: Testing cultural generality of sources of commitment to multinational enterprises, Journal of Management, 21(4): 671-690
 
Stone, D. (2007). The impact of cultural values on the acceptance and effectiveness of human resource management policies and practices, Human Resource Management Review, 17(2): 152-165
 
Wong, C. & Kenneth, S. (2000), Managing Localization of Human Resources in the PRC: a Practical Model, Journal of World Business, 34(1): 26-41
 

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