A303 Q06
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT [ Question 6 ] Presented by: Lee Wei Zhi Roy Teh
Exam Question 6 To
what extent are Western models of HRM relevant to the developing world? What
best practices, if any, can be exported unproblematically to developing countries? What
modifications or adaptations, if any, are needed? Give examples.
Answering our question … Introduction Defining Developed / Developing nations What is Western HRM? Best Practices Adopted Modifications required Conclusion
Introduction (1) Globalization has led to significant investment flows into developing countries
Along with investments, there is also the introduction of Western management practices with an intention of achieving above average returns on investment (Jaegar 1993)
Introduction (2) Many HRM theories have originated from Western countries, particularly the USA which has benefited the economic achievements of the industrialised world (Jaegar 1993)
Many developing countries disregarded the fundamental differences in sociocultural constraints, local conditions and circumstances
Developed / Developing Nations In Brief Developed nation :
The nations of Europe (including Russia), the United States, Japan, Australia, and New Zealand
Developing nation : Africa, Asia (except Japan), Latin America
What is Western HRM? 2) 3) 4) 5) 6)
Staffing Performance Management Compensation Management Training & Development Employee Relations
Western HRM in India?
Do not yield the same results in emerging economies like India
Motivation factors in US may not have an universal appeal in developing nations
As a manager, its very important to know the exact employee’s motivating factor
Staffing
In US, it mainly consists of planning, recruitment and selection
Whereas in India, relationships supersedes the above in a recruitment selection
Also, indian firms tend to value employee loyalty and tenure at the firm more than new skills
Performance Management
In US, it mainly consists of induction, performance appraisals, remedies to poor performance and rewarding good performance
Rewards will be an incentive for the westerners to perform
But, Indian culture preaches to have “only the necessary” and discourages excessive wealth accumulation
Compensation Management
In US, it is more than administering payroll, mainly : 1. To keep down labour cost 2. To motivate and retain workers
Entails both financial and non-financial rewards
In Latin American, employees are more concerned with the non-financial rewards
Training & Development
In US, HR needs to identify learning needs, devise a plan, deliver the training, evaluate outcomes
Training is compulsory in this knowledgebased economy
In US, new technology is readily adapted, while in India, new technology is always treated with skepticism and caution
Employee Relations
In US, it is about fostering a sense of partnership and the will to co-operate
Logic is positive interpersonal relations = productivity
Indian Organizations have a very high level of homogeneity (as compared to US). Often, majority are from that city, have a common language and have a common culture.
EXPORTED HRM BEST PRACTICES Staffing
Recruiting based on job specifics – skills, responsibilities, purpose Adopting a combination of common selection methods – interviews, skill test, personality test, track records (education, work experience, etc.)
Modifications/Adaptations: Recruitment in Latin America is often based on family connections Selection methods to include peer review of short listed candidates – group decision and employee voice in a collectivist society. Eg: Fujitsu Asia
EXPORTED HRM BEST PRACTICES Training & Development
HR identifies learning needs, devise a plan, deliver the training and evaluate the outcome.
Modifications/Adaptations: Training to include personal development as a form of long term employee investment – eg: Effective Communication Skills Emphasize on-the-job training (apprenticeship) Companies in China also sends employees abroad to foreign universities for training. Eg: Motorola China
EXPORTED HRM BEST PRACTICES Performance Management
Performance Appraisal Benchmarking HR Scorecard adoption Tying Performance with Promotion
Modifications/Adaptation: Performance measurement includes teamwork contribution instead of only bottomline and profit benchmarks
EXPORTED HRM BEST PRACTICES Compensation Management
Performance, skill & knowledge based pay system Various types of performance bonuses Health Benefits
Adaptations/Modifications: Group incentive bonus based on team performance for collectivist countries such as China, Singapore, Malaysia Compensation often includes free meals, accommodation allowance and special training package in China.
EXPORTED HRM BEST PRACTICES Employee Relations
Fostering a sense of partnership and will to co-operate between employee and the company Includes employee voice, workplace safety, fairness in HR decision – negotiations through Trade Unions
Modifications/Adaptations: Trade unions in China & Singapore are sponsored by the government rather than fully operated by union members
CONCLUSION Many
developing countries adopts Western HRM extensively due to its easily available materials and models
However,
Western HRM models may not be entirely useful due to socio-cultural and economy dynamics differences.
Hybrid
models consisting of BEST PRACTICE and BEST FIT elements will be most appropriate to overcome these differences
Exam Question 6 To
what extent are Western models of HRM relevant to the developing world? What
best practices, if any, can be exported unproblematically to developing countries? What
modifications or adaptations, if any, are needed? Give examples.
Answering our question … Introduction Defining Developed / Developing nations What is Western HRM? Best Practices Adopted Modifications required Conclusion
Introduction (1) Globalization has led to significant investment flows into developing countries
Along with investments, there is also the introduction of Western management practices with an intention of achieving above average returns on investment (Jaegar 1993)
Introduction (2) Many HRM theories have originated from Western countries, particularly the USA which has benefited the economic achievements of the industrialised world (Jaegar 1993)
Many developing countries disregarded the fundamental differences in sociocultural constraints, local conditions and circumstances
Developed / Developing Nations In Brief Developed nation :
The nations of Europe (including Russia), the United States, Japan, Australia, and New Zealand
Developing nation : Africa, Asia (except Japan), Latin America
What is Western HRM? 2) 3) 4) 5) 6)
Staffing Performance Management Compensation Management Training & Development Employee Relations
Western HRM in India?
Do not yield the same results in emerging economies like India
Motivation factors in US may not have an universal appeal in developing nations
As a manager, its very important to know the exact employee’s motivating factor
Staffing
In US, it mainly consists of planning, recruitment and selection
Whereas in India, relationships supersedes the above in a recruitment selection
Also, indian firms tend to value employee loyalty and tenure at the firm more than new skills
Performance Management
In US, it mainly consists of induction, performance appraisals, remedies to poor performance and rewarding good performance
Rewards will be an incentive for the westerners to perform
But, Indian culture preaches to have “only the necessary” and discourages excessive wealth accumulation
Compensation Management
In US, it is more than administering payroll, mainly : 1. To keep down labour cost 2. To motivate and retain workers
Entails both financial and non-financial rewards
In Latin American, employees are more concerned with the non-financial rewards
Training & Development
In US, HR needs to identify learning needs, devise a plan, deliver the training, evaluate outcomes
Training is compulsory in this knowledgebased economy
In US, new technology is readily adapted, while in India, new technology is always treated with skepticism and caution
Employee Relations
In US, it is about fostering a sense of partnership and the will to co-operate
Logic is positive interpersonal relations = productivity
Indian Organizations have a very high level of homogeneity (as compared to US). Often, majority are from that city, have a common language and have a common culture.
EXPORTED HRM BEST PRACTICES Staffing
Recruiting based on job specifics – skills, responsibilities, purpose Adopting a combination of common selection methods – interviews, skill test, personality test, track records (education, work experience, etc.)
Modifications/Adaptations: Recruitment in Latin America is often based on family connections Selection methods to include peer review of short listed candidates – group decision and employee voice in a collectivist society. Eg: Fujitsu Asia
EXPORTED HRM BEST PRACTICES Training & Development
HR identifies learning needs, devise a plan, deliver the training and evaluate the outcome.
Modifications/Adaptations: Training to include personal development as a form of long term employee investment – eg: Effective Communication Skills Emphasize on-the-job training (apprenticeship) Companies in China also sends employees abroad to foreign universities for training. Eg: Motorola China
EXPORTED HRM BEST PRACTICES Performance Management
Performance Appraisal Benchmarking HR Scorecard adoption Tying Performance with Promotion
Modifications/Adaptation: Performance measurement includes teamwork contribution instead of only bottomline and profit benchmarks
EXPORTED HRM BEST PRACTICES Compensation Management
Performance, skill & knowledge based pay system Various types of performance bonuses Health Benefits
Adaptations/Modifications: Group incentive bonus based on team performance for collectivist countries such as China, Singapore, Malaysia Compensation often includes free meals, accommodation allowance and special training package in China.
EXPORTED HRM BEST PRACTICES Employee Relations
Fostering a sense of partnership and will to co-operate between employee and the company Includes employee voice, workplace safety, fairness in HR decision – negotiations through Trade Unions
Modifications/Adaptations: Trade unions in China & Singapore are sponsored by the government rather than fully operated by union members
CONCLUSION Many
developing countries adopts Western HRM extensively due to its easily available materials and models
However,
Western HRM models may not be entirely useful due to socio-cultural and economy dynamics differences.
Hybrid
models consisting of BEST PRACTICE and BEST FIT elements will be most appropriate to overcome these differences
