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

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

12. Backdoor School contacts KOREAN RECRUITMENT: A COLLECTIVIST APPROACH

13. SELECTION

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

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

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

18. TRAINING AND DEVELOPMENT

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

20. Exhibit 12.5 shows training systems used in different countries

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

24. 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

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

27. 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

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

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

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

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

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

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

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

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

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

38. 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

39. EX 12.10 THE JAPANESE PAY RAISE FORMULA

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

42. A COMPARATIVE VIEW OF LABOR RELATIONS

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

44. 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

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

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

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

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

49. EXHIBIT 12.16 WHO GETS ALONG?

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