The Relative Importance of Cultural Differences and National Business Systems on the Development of Hrm. What Are the Implications of Your Conclusions for Convergence and Divergence?”

Comparative and International Human Resource Management
________________________________

Module 26336

Assignment 2
15/04/2012

“Debate and critique the relative importance of cultural differences and national business systems on the development of HRM. What are the implications of your conclusions for convergence and divergence?”

Student number: 200915768
Turnitin ID: 16185553
Words (excluding references): 3512

Introduction

Speaking about the human resource management adaptation as a need for companies, Newman and Nollen (1996) argued, “When in Rome, do as Romans do”. This quote raises the question of the adaptation of HRM practices and theories to cross-cultural differences and national business system. The development of multinational corporations (MNCs), the foreign direct-investments (FDI) and the cross-border mergers and acquisitions (M&A) are increasing and can only success with a deep understanding of the local context and an integration of the home country value, practices and systems.

This process is directly linked to the development and choices made in the human resource systems and practices. To face the increasing local and global competition, companies have developed an increasing interest in HRM to understand the importance of the culture and national business system in running and managing a new business. Studying these elements will allow understand the factors influencing the HR practice and systems on a specific context. (Budhwar and Sparrow, 2002)
A firm can hold three positions: a culturist (based on new country culture and national business system (NBS)), a universalist or a hybrid position (mixing both). Other studies demonstrated the importance of the national business environment (except culture) is also a main factor to take in account when developing HRM. Many studies showed a convergence in HR practices worldwide, even if divergences remain. (Brewster et al., 1996)

For example, European and Asian

Bibliography: Books: Beardwell J., Claydon T., “Human Resources Management: A Contemporary Approach”, 2007 Bjo¨rkman, I., & Lu, Y. (1999). The management of human resourcesin Chinese-Western joint ventures. Journal of World Business, 34(3): 306–324. Demorgon J.,(1996), Complexité des cultures et de l’interculturel, Antropos Hall Hill, C. (2009). International business: competing in the global marketplace. New York: McGraw-Hill/Irwin. Bjorkman, I., & Lu, Y. (1999). The management of human resources in Chinese-Western joint ventures. Journal of World Business, 34(3): 306–324. Beardwell, J. and Claydon, T. (2007) Human Resource Management: A Contemporary Approach, Harlow, Pearson Education. Brewster, C., Mayrhofer, W., & Morley, M. (Eds.). (2004). Human resource management in Europe: Evidence of convergence?, Oxford, Butterworth Heinemann. Brunstein I., (1992), Human Resource Management in France, Employee Relations, pp.4, 14, 53 Budhwar Ding, D. Z., Goodall, K., & Warner, M. (2000). The end of the ‘‘iron rice-bowl’’: Whither Chinese human resource management? International Journal of Human Resource Management, 11(2): 217–236. Goodall, K., & Warner, M. (1997). Human resources in Sino-foreign joint ventures: Selected case studies in Shanghai, compared with Beijing. International Journal of Human Resource Management, 8(5): 569–594. Gooderham. P.N., & Brewster, C. (2003) Convergence, stasis or divergence? Personnel management in Europe. Scandinavian Journal of Business Research, (17), pp. 7 – 18 Kim, D., & Park, S Kirkman, B. L., & Shapiro, D. (1997). The impact of cultural values on employee resistance to teams: toward a model of globalized self-managing work team effectiveness. Academy of Management Review, 22(3): 730–757. Newman K, Nollen S. (1996), Culture and congruence: the fit between management practices and national culture. Journal of International Business Studies, 27:753–79. Nilan, P. (1999). Young people and globalizing trends in Vietnam. Journal of Youth Studies, 2(3): 353–370. Ramirez, J., Fornerino, M., (2007), Introducing the Impact of Technology: A ‘Neo-contingency’ HRM Anglo-French Comparison, Int. Journal of Human Resource Management, Vol. 18, No. 5, pp. 924-949.