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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Part 7 Cross-functional issues.

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Presentation on theme: "Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Part 7 Cross-functional issues."— Presentation transcript:

1 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Part 7 Cross-functional issues

2 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Global Thinking Concerned with all things that are different in doing business in more than one country at a strategic level Local thinking is informed by global thinking but carried out separately, as all action is local Slide 30.1

3 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Global Thinking - HR Issues How cultural differences between countries can be accommodated How effective communication can be maintained across national boundaries Reference to employment aspects in localities Slide 30.2

4 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Globalisation Has become a dirty word Blamed for many ills in the developing world HRM has to contend with human resource implication of globalisation Slide 30.3

5 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Internationalisation Most complex form of decentralising operations Involves differences in language, culture, economic, political, legislative systems, etc HRM helps to shape strategic direction HR remains one of the last centralising forces Decentralisation needed to empower subsidiaries International HR still lacks accepted definition Slide 30.4

6 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Importance of National Culture Nationality has an effect on human behaviour Certain elements of national culture remain deeply rooted Cultural diversity Framework for fitting together the maze of cultural diversity - Hofstede Slide 30.5

7 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Differences in National Cultures Individualism Power distance Uncertainty avoidance Masculinity Confucian dynamism (added later) (Hofstede, 1991) Slide 30.6

8 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Cultural Differences Between Nations (1 of 4) Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill. Slide 30.7

9 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Cultural Differences Between Nations (2 of 4) Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill. Slide 30.8

10 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Cultural Differences Between Nations (3 of 4) Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill. Slide 30.9

11 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Cultural Differences Between Nations (4 of 4) Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill. Slide 30.10

12 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Clusters of National Cultures Pyramid of people – examples: Arab speaking, Greece, Spain Well oiled machine – examples: Austria, Finland, Germany Village market – examples: Britain, Denmark, USA Family – examples: India, Singapore, West Africa Slide 30.11

13 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Strategic Implications of Cultural Diversity 1.Centrality of decision making 2.Rewards & competition 3.Risk 4.Formality 5.Organisational loyalty 6.Short- or long-term orientation (Hodgetts & Luthans, 1991) Slide 30.12

14 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 International Communication A major challenge for HR What did he say? What did he mean? Slide 30.13

15 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Barriers to Effective International Communication Frame of reference Stereotypes Cognitive dissonance Language Jargon Corporate culture Slide 30.14

16 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Purposes of International Communication (1 of 2) Reinforce group culture so as to improve speed & effectiveness of decision making Encourage information exchange in internationally related activities Form the background to succession planning activity Establish in peoples mind what is expected of them by parent company Slide 30.15

17 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Purposes of International Communication (2 of 2) Facilitate change in a way acceptable to the parent company Undermine the not invented here attitudes and thereby encourage changes Improve the attractiveness of the company in the recruitment field Encourage small activities which may be tomorrows cream & give activities perspective (Foulds & Mallet, 1989) Slide 30.16

18 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Conventional Approaches to Co-ordination Japanese centralisation American formalisation European socialisation (Bartlett & Ghoshal, 1989) Slide 30.17

19 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Increasing the Range Evangelisation Standards and norms Systems Concentration of capability Slide 30.18

20 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Evangelisation Evangelisation – process of winning acceptance of a common mission & shared purpose throughout the organisation Works through shared belief Works through parables Can use apostles Slide 30.19

21 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Summary (1 of 2) International HRM still lacks an accepted definition and content Much international management activity is via multinational companies & policies of globalisation Understanding cultural diversity is crucial Hofstede concluded cultures had 4 dominant value systems Hodgetts and Luthans suggested that Hofstedes findings influenced aspects of management Slide 30.20

22 Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Summary (2 of 2) Communication is exacerbated by differences in frames of references, stereotyping, cognitive dissonance & language There are three broad types of traditional forms of co-ordination More particular forms of co-ordination include evangelisation, standards & norms, systems, and locating capability Slide 30.21


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