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CHAPTER 12 NATIONAL DIFFERENCES IN HRM: KNOWING WHEN AND HOW TO ADAPT

CHAPTER 12 NATIONAL DIFFERENCES IN HRM: KNOWING WHEN AND HOW TO ADAPT. WHY TO NATIONS DIFFER IN HRM?. Exhibit 12.1 The National Context and HRM. SOCIAL INSTITUTIONS. Include the family, educational, economic, and the political and legal systems

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CHAPTER 12 NATIONAL DIFFERENCES IN HRM: KNOWING WHEN AND HOW TO ADAPT

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  1. CHAPTER 12 NATIONAL DIFFERENCES IN HRM: KNOWING WHEN AND HOW TO ADAPT

  2. WHY TO NATIONS DIFFER IN HRM?

  3. Exhibit 12.1 The National Context and HRM

  4. SOCIAL INSTITUTIONS • Include the family, educational, economic, and the political and legal systems • Closely linked with national and business culture

  5. THREE TYPES OF ISOMORPHISM • Coercive • Mimetic • Normative

  6. THE NATIONAL CONTEXT AND KEY BUSINESS PRACTICES • Education and training of labor pool • Laws and cultural expectations for selection practices • Types of jobs favored

  7. The national context and key business practices, continued • Laws and cultural expectations of fair wage and promotion criteria • Laws and traditions regarding labor relations

  8. RESOURCE POOL • The resource pool represents all the human and physical resources available in a country - both from natural and induced factor conditions

  9. RECRUITMENT Attract qualified applicants

  10. US RECRUITMENT STRATEGIES • Open and public • See Exhibit 12.3

  11. Backdoor School contacts KOREAN RECRUITMENT: A COLLECTIVIST APPROACH

  12. SELECTION

  13. Match skills and job requirements Universalistic criteria See Exhibit 12.4 THE US APPROACH TO SELECTION

  14. SELECTION IN COLLECTIVIST CULTURES • The in-group • Preference for family • Value personal characteristics • High school and university ties substitute for family membership

  15. IMPLICATIONS FOR THE MULTINATIONAL • Managers must follow local norms to get best workers • Often a tradeoff with benefits of home country practices

  16. TRAINING AND DEVELOPMENT

  17. DIFFERENCES IN TRAINING AND DEVELOPMENT • Result from: • differences in educational systems • values regarding educational credentials • cultural values regarding other personnel practices

  18. Exhibit 12.5 shows training systems used in different countries

  19. Exhibit 12.5 shows skills taught by U.S. organizations

  20. VOCATIONAL EDUCATION IN GERMANY • Standardized national system = a well trained labor force • Affects over 65% of 15 to 16 year olds • Collaboration of employers, unions, and state • See Exhibit 12.6 - Dual system

  21. MANAGEMENT DEVELOPMENT: U.S.A. • Senior level managers often identify managerial potential • Appraisals of managerial readiness • Assessment centers • Mentoring • "Fast track" careers

  22. MANAGEMENT DEVELOPMENT: TRADITIONAL JAPANESE STYLE • Recruits directly from universities • Join the company as a group • Selected on personal qualities and fit with the corporate culture • Mutual commitment of permanent employment

  23. Management development: traditional Japanese style, continued • Similar pay and promotion for first ten years - age seniority • Informal recognition of those high performance managers

  24. SHIFITING SOCIAL INSTITUTIONS: PRESSURES FOR CHANGE • Asahi ties promotions to evaluations • Matsushita uses merit pay for managers • Honda is phasing out seniority

  25. IMPLICATIONS FOR THE MULTINATIONAL • Examine feasibility of exporting training • IHRM orientation affects training needs of local managers • Locations advantages - see Exhibit 12.9

  26. PERFORMANCE APPRAISAL • Identifying people to reward, promote, demote, develop and improve, retain, or fire

  27. U.S. PERFORMANCE APPRAISAL SYSTEM • Performance standards • Performance measures • Performance feedback • Human resources decisions • Must meet legal requirements

  28. PERFORMANCE APPRIASAL IN COLLECTIVIST CULTUES • Managers work indirectly to sanction poor performance • Often avoid direct performance appraisal feedback

  29. COMPENSATION • Wages and salaries, incentives such as bonuses, and benefits such as retirement contributions

  30. COMPENSATION IN THE U.S. • Wages and salaries differ based on two major factors • external • internal

  31. COMPENSATION IN JAPAN: TRADITIONAL APPROACH • Base salaries for positions • Skill and educational requirements • Age • Marital status and family size may count • Bonuses

  32. NEW MERIT (Japanese style) • Can affect pay raises to a greater degree the traditional position/seniority system • Does not match the Western view - Nenpo • Stresses attitudes as much as performance

  33. EX 12.10 THE JAPANESE PAY RAISE FORMULA

  34. EVALUATION/COMPENSTATION: Implications for the Multinational • Match HRM orientation • Seek location advantages in wages • See Exhibit 12.12 next

  35. A COMPARATIVE VIEW OF LABOR RELATIONS

  36. PATTERNS OF LABOR RELATIONS DEPEND ON: • Historical factors • Ideology reasons • Management views of unions

  37. UNION MEMBERSHIP DENSITY • Germany: estimated 40% belonged to trade unions • U.S.A.: 14.2% nonagricultural workforce--down from a high of over 35% in the early 1940s • Denmark: over 80% unionized • Great Britain: approximate 50% unionized

  38. SOME HISTORICAL UNION DIFFERENCES • German • formalized, legalistic • bargaining centralized between large unions and large corporations • works council

  39. French--militant/strong ideologies • U.S.--"bread and butter" issues--wages, benefits, and working conditions

  40. UNION STRUCTURES • Enterprise • Craft • Industrial • Local • Ideological • White collar/professional

  41. IMPLICATIONS FOR THE MULTINATIONAL • Must deal with local labor practices • A factor in location choice - see Exhibit 12.16

  42. EXHIBIT 12.16 WHO GETS ALONG?

  43. CONCLUSIONS • National context and HRM • contrasts between individualist U.S. v. collectivist • Recruitment and selection • Training and development • Performance evaluation and compensation

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