HRM in the Local Context:When and How to Adapt

Chapter 11, Part 1

The National Context of HRM

Education and training of the labor pool Laws and cultural expectations for

selection practices Impact on women and ethnic minorities

Types of jobs favored by applicants Laws and cultural expectations regarding

fair wages and promotion criteria Laws and traditions regarding labor

practices

Human Resources Management (HRM) and HRM Functions

HRM: deals with the entire relationship of the employee with the organization

Recruitment: process of identifying and attracting qualified people to apply for vacant positions

Selection: process of filling vacant positions in the organization

HRM Functions (2)

Training and development: giving employees the knowledge, skills, and abilities to perform successfully

Performance appraisal: system to measure and assess employees’ work performance

HRM Functions (3)

Compensation (pay and benefits): organization’s entire reward package, including financial rewards, benefits, and job security

Labor relations: ongoing relationship between an employer and those employees represented by labor organizations

Recruitment StrategiesUsed Around the World

Walk-ins or unsolicited applications Newspaper or Internet advertisement Company Web site job posting Internal job postings Public and private personnel agencies Placement services of educational

institutions Current employee recommendations

Exhibit 11.2: Steps in the Recruiting Process

Recruitment in Korea and Japan

Backdoor recruitment: prospective employees are friends or relatives of those already employed

Hourly employees from certain high schools may be preferred

Managers are recruited from prestigious universities.

How People Prefer to Find JobsEmployment Agencies

People in English speaking countries tend to use private employment agencies

French applicants use both public and private employment agencies

Public employment agencies are preferred in Former Communist and socialist countries Scandinavian countries (Ex: Norway,

Sweden)

How People Prefer to Find JobsAdvertisements and the

Internet

Advertising in newspapers and responding to newspaper ads Both very public forms of recruitment People in individualistic societies are more

likely to use these methods Use of the Internet is probably more

popular in individualistic societies than in collectivist societies

How People Prefer to Find JobsApplication Methods

People in individualistic and high femininity societies more likely to apply for a job directly

People in collectivist or socialist societies are more likely to get help from friends or family members Japan, Korea, and other East Asian countries Latin America

Selection in the U.S.

Job qualifications are laid out in a job description Match skills and job requirements Individual achievements are the basis for selection Prohibitions against nepotism - the hiring of family

members Forbidding managers to supervise family members Laws against discriminating on the basis of race or

ethnic background, gender, age, or disability Reasonable accommodations must be made to allow a

disabled person to work if he or she is qualified for the job.

Exhibit 11.7: Typical Steps in U.S. Personnel Selection

Selection in Collectivist Cultures

Based on the in-group. This is believed to reduce risks of hiring the wrong person.

Value potential trustworthiness, reliability, and loyalty over performance-related background

Preference for family In large companies, high school and university

ties substitute for family membership In Japan and Korea, young men are preferred

because they can be taught company values and are believed to be more dedicated workers than women.

Implications for the Multinational: Recruitment and

Selection

Managers must often follow local norms to get best workers

Evaluate costs and benefits of following local traditions

Training and Development

Need for training and development varies by country

Differences in training and development due to Differences in educational systems Values regarding educational credentials Cultural values regarding other personnel

practices

Training and Development in the U.S.

Senior level managers often identify managerial potential

Appraisals of managerial readiness based on Assessment centers Mentoring “Fast track” careers

Remains the responsibility of the individual

Exhibit 11.10: Skills Taught by U.S. Organization

Training and Development in Mexico

Training for Skilled Workers in Germany

1. Dual system: combination of company apprenticeship training and part-time vocational school training.

Leads to a skilled worker certificate and employment as a skilled worker

2. College level training in a Fachschule (vocational college

Leads to employment as a Meister (master technician)

Training Skilled Workers in Germany

HRM in Japan

Permanent employment for 15-18% of work force

Permanent (usually male), full-time employees of large companies

Recruitment directly from universities Recruits join the company as a group New recruits are often liberal arts graduates Selected on personal qualities that fit the corporate

culture Rotation among different jobs is an important part of

training and development Similar pay and promotion for first 10 years—age

seniority

HRM in Japan

A manager who is performing poorly may be transferred to a more appropriate job in a related company or supplier (also done in Korea).

Lifetime employment usually ends at age 55. Manager may be offered part-time

employment or a transfer to a related company, usually a supplier

Almost half a manager's compensation is based on bonuses, which are given twice a year When profits are low, bonuses are also low.

Small companies often have to lay off workers during economic recessions

HRM in Japan

Pressures for change Asahi ties promotions to evaluations Matsushita uses merit pay for managers Honda is phasing out seniority Fewer new college graduates are being

hired Toyota established a training center in

Tokyo for their U.S. managers