Cross-Cultural Approaches in HRM Lecture 6

HRM in cultural context For multinational corporations Global standardization vs. local competition Transition in the HRM approach: globalization glocalization localization For multicultural domestic organizations Diversity management; “unity through diversity” Domestic organizations in transitioning economies Adaptation of ‘US’ HRM philosophies and practices to local cultural identity Change of organizational culture

The following are the type of questions in job application forms or interviews asked by the majority of organizations in a particular country. Can you guess the cultural characteristics of the country? Applicant’s mother’s and father’s occupation. Marital status of the applicant. Marital status of the mother and father of the applicant (e.g., whether or not they are separated). Occupation of the spouse. Number of siblings. Applicant’s order of birth. Intention to get married and have children. Names of schools attended starting with the primary school. Membership to social clubs; hobbies. Books most recently read. Photo of the applicant.

National & Organizational Cultures SMEs, family-owned MNCs, large organizations, organizations, manufacturing IT, service Relationship Performance oriented oriented Hierarchical, Egalitarian, centralized participative Inflexible; change Flexible; change & risk aversive & risk seeker

Relationship Orientation Performance Orientation Cultural Characteristics & HRM Practices (Aycan, 2005) Relationship Orientation Performance Orientation 1. Individualism vs. Collectivism Collectivism Individualism 2. Performance orientation Low High Turkey Turkey 3. Attitudes towards work Work to live Live to work Turkey 4. Attitudes towards rules Particularism Universalism Turkey

5. Nature of work relationships Emotional Contractual Turkey 6. Attitudes towards criticisms Negative Positive Turkey 7. Communication style Indirect, subtle Direct, assertive Turkey 8. Interpersonal conflict management Avoidance Third-party involvement Confrontation Turkey

Relationship orientation Performance orientation Preference for internal or network-based recruitment. Preference for formal, structured and widespread use of recruitment channels Criteria in recruitment, selection, and performance appraisal emphasize maintaining good interpersonal relationships and work in harmony with others. Criteria in recruitment, selection, and performance appraisal emphasize job-related knowledge and technical competencies Subjective evaluations in recruitment, selection, and performance appraisal; indirect, subtle and non-confrontational feedback. Objective and systematic evaluations in recruitment, selection, and performance appraisal; direct and explicit feedback. Criteria used career planning, compensation and reward management emphasize loyalty. Criteria used in career planning, compensation and reward management emphasize performance outcomes and merit. Strong emphasis on employee welfare programs and intrinsic rewards Awards, recognition, and bonuses for good performance

Egalitarian, participative Hierarchical, Centralized 1. Societal & Organizational Structure (Power Distance) Hierarchical Egalitarian Turkey 2. Decision making process Centralized Consultative Participative Turkey 3. Attitudes towards rules Particularism Universalism Turkey 4. Most common leadership Style Autoritarian Paternalistic Participative Turkey

Hierarchical, centralized Egalitarian, participative Differential criteria used in recruitment, selection and performance appraisal. Uniform criteria and methods used in recruitment, selection and performance appraisal Criteria used in recruitment, selection, performance appraisal, compensation and reward management emphasize good interpersonal relationships with management, social class, seniority, and age. Criteria used in recruitment, selection, performance appraisal, compensation and reward management emphasize job-related competencies and merit. Equal employment opportunity is encouraged. Top-down performance appraisal Multiple assessors and multiple criteria in performance appraisal Non-participative decision making in training need assessment, job analysis, and human resource and career planning Participative decision making in training need assessment, job analysis, and human resource and career planning One-way lecturing; role-modeling of superiors. Participative, interactive training.

Inflexible, change & risk aversive Flexible, change & risk seeker 1. Fatalism High Low Turkey 2. Planning Past-oriented Present-oriented Future-oriented / reactive / proactive Turkey 3. Attitudes towards change Negative Neutral Positive Turkey 4. Perception of human nature Suspicious & stable Trustworthy & malleable Turkey

Inflexibility; risk and change aversive Flexible, risk and change seeker Preference for internal or network-based recruitment Preference for external recruitment Detailed, narrowly defined, fixed job desciptions Broad, flexible, dynamic job descriptions Process-oriented performance evaluation (intention, effort, motivation to do the job) Results-oriented performance evaluation Low emphasis on training and development Strong emphasis on training and development Low performance-reward contingency High performance-reward contingency Preference for fixed pay and employee security plans. Equity principle in compensation and reward management; individual bonuses / commissions.