Managing HR in an International Context Demands a High Level of Cross Cultural Sensitivity

Assignment Managing HR in an international context demands a high level of  cross cultural sensitivity.

Module Cross Cultural Human Resource Management

PRESENTED TO: Siobhan Alderson Val Finnigan Crystal Zhang

PRESENTED BY: Ali Salah Mohamed Student ID:c7084377

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Date: 08-11-10 Index

Introduction

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Human resource management (HRM)

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Globalization

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Cross cultural Sensitivity

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Cross Cultural Differences

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Cros Crosss Cult Cultur ural al sens sensit itiv ivit ity y Solu Soluti tion on for for Inte Intern rnat atio iona nall Or Orga gani niza zati tion ons. s.

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Cross Cultural Team Building

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Cross Cultural Synergy

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Cross cultural training and learning

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Conclusion

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References

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Managing HR in an international context demands a high level of cross cultural sensitivity.

Introduction

This report is written to the critically evaluate the statement "Managing HR in an international context demands a high level of cross cultural sensitivity".

The objectiv objectives es of this this report report are to critica critically lly evalua evaluate te the complexi complexity ty of the management of people in the international context and to be able to apply Human Resource Management HRM techniques with sensitivity to national cultural differences. While evaluating an understanding of the principle areas of HRM activity in intern internati ationa onall contex context, t, this this report report seeks seeks to identi identify fy and undert undertake ake key Human Human Resource HR issues the high level of cross cultural sensitivity facing Multi-National Companies. We will try to understand the cross cultural differences and find solution to this sensitivity in international context.

Human resource management (HRM)

Human resource management (HRM) is the strategic and coherent approach to the manage managemen mentt of an organi organizati zation’ on’ss most most valued valued assets assets covers covers all the concep concepts, ts, strategies, policies and practices which organisations use to manage and develop the people working there who individually and collectively contribute to the achievement of the objectives of the organization(Plessis organizat ion(Plessis and Huntley 2009). HR Is a description of  the processes involved involved in managing people in organizations. organizations. In simple words, words, HRM means recruiting people, developing their capacities, utilizing their skills, maintaining and managing their services in tune with the job and organizational requirement (Plessis and Huntley 2009). Globalisation is changing the world’s economic landscape BERR (2008), the expans expansion ion of intern internatio ational nal trade, trade, techno technolog logical ical advanc advances es and the increas increasee in the number of companies dealing on the international stage have brought about a dramatic change in the frequency, context and means by which people from different cultural backgrounds interact Elashmawi ( 1998).

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An international human resource management IHRM system is a set of different activities, functions and a series of action that are organized at encouraging, training, developing developing and maintainin maintaining g the human resources resources of a multinatio multinational nal organizatio organization n (Plessis and Huntley 2009).

Globalization

Global Globalizat ization ion is an import important ant aspect aspect within within the modern modern econom economic ic enviro environme nment. nt. Economies regardless of their scale are achieving financial development and stability IMF (2008). Economics development can be achieved by many ways by working on different dimension of economy. Every country’s economics solution to the problem will be different from other, but the objective of all countries and economies is to achieve economic prosperity IMF Staff Report (2008).

There There is no univ univer ersa sall lly y agree agreed d defi defini niti tion on of glob global aliz izati ation on;; it is the the proc proces esss of  increasing the connectivity and interdependence of the world’s markets and businesses WTO Report (2008). This process has speeded up considerably in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally.

Human societies across the world have established progressively closer contacts over  many centuries, but recently the pace has dramatically increased. Jet airplanes, cheap telephone service, email, computers, huge ocean-going ships, instant capital flows, all these have made the world more interdependent than ever. Multinational companies manufacture products in many poor countries and sell to consumers around the world especially in those countries where buyer powers is very strong. Capital, technology, people and raw materials move ever more quickly across nation national al and intern internatio ational nal border borders. s. Along Along with with produc products ts and financ finances, es, ideas ideas and cultures circulate more freely. As a result, laws, economies, and social movements are forming at the international level. This means that an international human resource manage managemen mentt IHRM IHRM system system should should use the correct correct approa approach ch for recruit recruitmen mentt by ensuring that every one in the organization with different cultural backgrounds work  and fit together (Plessis and Huntley 2009).

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Cross cultural Sensitivity

International human resource management IHRM covers a wide range of business critical areas that need cross cultural cultural analysis. analysis. International International HR is a major factor that causes success in international business (Forster 2000). An organizations’ HR department who is culturally sensitive should be aware that there could be differences between their culture and another nations’ culture, and that these differences could affect their business activity (Hutchings 2002). Managing HR  in international context demands a high level of culturally sensitivity. IHRM would understand understand other countries’ countries’ traditions traditions and ways of life, or attempt attempt to learn and apply new understandings. Importantly, culturally sensitive organizations need to be free from prejudices and preconceptions about other countries, cultures and staff.

IHRM need maximising the cross-cultural performance of expatriates in international postings and must be an integral element of the strategic human resource management planning of organisations. The pace of globalisation make necessary that an increas increasing ing number number of organi organisat sation ionss must must think think global globally ly and ensure ensuress that that their  their  expatriates are prepared and supported to do the same (Hutchings 2002).

IHRM IHRM may offer offer advice advice on a number number of areas areas includ including ing recruit recruitmen ment, t, reloca relocatio tion, n, international assignments, staff retention and training programmes.

Cross Cultural Differences

Culture is a set of shared attitudes, values, goals, and practices that characterizes an institution or organization (Asgary and Walleor 2002) or a complex socially constructed system which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by human as a member of society (Banerjee 2008).

According to (Banerjee 2008) in multinational organizations different cultures and cultur cultural al backgr backgroun ounds ds betwee between n a highly highly divers diversee staff staff base base somet sometime imess hinder hinderss or  preven prevents ts progre progress ss and brings brings challe challenge ngess and diffic difficulti ulties. es. In intern internatio ational nal contex contextt

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cultur culturee differe difference ncess do not necess necessaril arily y mean mean only only differe difference ncess betwee between n Western Western countries’ and Eastern countries’ cultures, but it includes differences in general areas such as in behaviour, custom, norms, values, expressions, group mechanics and verbal communication. These cross cultural differences then follow on through to high level areas such as management styles, corporate culture, marketing and HR.

Cross Cultural sensitivity Solution for International Organizations.

Cross Cross cultur cultural al sensit sensitivi ivity ty is becomi becoming ng challe challenge nge for multin multinati ationa onall organi organizati zations ons (Tjosvold and Leung 2003). International companies from all over the world creating joint ventures, acquisitions and alliances to compete in world market. In order to have a well functioning business unit within an organization, cross cultural interaction is critical. In order to

Cross Cultural Team Building

Cros Crosss cult cultur ural al work worksh shop opss and and tanni tanning ng will will prov provid idee tool toolss and and meth method odss to IHR  IHR  managers to support the process of staff integration, regardless of race, ethnicity, religion, gender, or social class and will reduce cross cultural disagreement or clash between ideas and build team spirit (Cooper et al 2005). This is essentially done through highlighting cultural differences and building on strengths to ensure that cultural sensitivity is used positively (Payene 2010), (Cooper et al 2005).

Cross Cultural Synergy

A study of (Payene 2010) reports that international mergers, acquisitions and jointventures require their organizational members are involved in cross-cultural interactions, people from different cultural backgrounds require to harmonise in order  to succeed. This can be achieved by cross cultural counselling and taking account of  communication styles, norms, values of organizational members.

Cross cultural training and learning

Multinational organizations are required to provide cross-cultural training prior to any move. International assignments are long term processes and not one-off events. Thus, it makes absolute absolute sense to run an extensive extensive cross-cultural cross-cultural training process process and build

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on the learning curve initiated prior to the move and continue with either experimental or formal cross-cultural learning between repatriated staff, senior expatriated staff and new expatriates (Hutchings 2002).

Conclusion

The objectiv objectives es of this this report report are to critica critically lly evalua evaluate te the complexi complexity ty of the management of people in the international context and to be able to apply Human Resource Management HRM techniques with sensitivity to national cultural differences.

In the future, the growth of global competition among business organizations will demand demand the contin continuin uing g develo developme pment nt of cross cross cultur cultural al traini training ng and briefi briefings ngs for  employees. IHR managers are required to work with colleagues, customers or clients from from differ different ent cultur cultural al backgr backgroun ounds ds to unders understan tand d and use use cultur cultural al sensit sensitivi ivity ty in positive way. In this research work we have analysed the IHRM practices norms and values in context of cross cultural sensitivity. Researchers have focused on cross cultural team building, cross cultural workshops and tanning, cross culture synergy where it is necessary necessary for multination multinational al organizatio organizations ns to provide provide cross-cultu cross-cultural ral training training prior to any move.

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References:

Asgary N and Walleor H Alf (2002), The Cultural Impact of Globalisation: Economic Activity and Social Change, Cross Cultural Management, Vol 9

Banerjee S (2008), Dimensions of Indian culture, core cultural values and marketing implications An analysis, Cross Cultural Management: An International Journal Vol. 15 No. 4, 2008 pp. 367-378.

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BERR BERR (2008) (2008),, Global Globalizat ization ion and the Chang Changing ing UK Econom Economy, y, [Avail [Availabl ablee from] from] Accessed on 05-11-10

Cooper Cooper D, Doucet Doucet L, and Pratt Pratt M (2005) (2005),, Unders Understan tandin ding g "Appro "Appropri priaten ateness ess"" in Multinational Corporations, Available, http://www.business.uiuc.edu/Working_Papers/papers/05−0122.pdf, Accessed 05-11-10

Elashmawi F (1998), European Business Review, Volume 98 · Number 4 · 1998 · pp. 211–216

Forste Forsterr N (2000) (2000),, Expatri Expatriates ates and the impact impact of crosscross-cul cultur tural al traini training, ng, Human Human Resource Management Journal, VOL 10 NO 3

Hutchings K (2002), Improving Selection Processes But Providing Marginal Support: A Review of Cross-Cultural Difficulties for Expatriates in Australian Organisations in China, Cross Cultural Management, Volume 9

IMF

staff

(2008),

Globalization:

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Brief

Overview,

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http://www.imf.org/external/np/exr/ib/2008/053008.htm,, Accessed, 05-11-10 http://www.imf.org/external/np/exr/ib/2008/053008.htm

Plessi Plessiss J du A and K. Huntley Huntley (2009), (2009), Challen Challenges ges in A Global Globalise ised d Context Context For  International Human Resource Managers in South African Organisations, International Review of Business Research Papers Vol.5 No. 1 January 2009 Pp. 413427

Payene N (2010), Cross Cultural Solutions for International Business, [Available From],

, solutions-international-business.html >, Accessed, 05-11-10.

Tjosvold Tjosvold D, Leung Leung K (2003), (2003), Cross Cross Cultural Cultural Management, Management, Foundations Foundations and Future, Future, Ashgate Publishing

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WTO WTO

Repo Report rt

(200 (2008) 8),,

Glob Global aliz izati ation on

and and

Trad Trade, e,

[Ava [Avail ilab able le

From From], ],

http://www.wto.org/english/res_e/booksp_e/anrep_e/wtr08-2b_e.pdf , Accessed, 0411-10