1. Cross-Cultural Approaches in HRM
Lecture 10

2. 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

3. The Model of Culture Fit (Aycan, Kanungo, et al., 2000)
Influence of Culture on HRM:
The Model of Culture Fit (Aycan, Kanungo, et al., 2000)
Organizational
Characteristics
Size, structure, strategy
Internal Work Culture
Task-Driven Assumptions
Market Characteristics
Prevailing managerial assumptions about
what the key tasks are and how they should be
best accomplished.
Ecological,
Nature of Industry
HRM Practices
Socio-Economic
Ownership / Control
& Political Context
Job Design
Resource Availability
Ecological Context
Employee-Related
Supervisory Practice
Legal & Political
Assumptions
Context
Reward Allocation
Historical Events
Socio-Cultural
Prevailing managerial assumptions about
employee nature and
behavior
Socialization
Context
Process
Values, assumptions,
belief systems,
behavioral patterns

4. Influence of Socio-Cultural Context on Work Culture & HRM Practices
Socio-Cultural Internal Work HRM Practices
Context Culture
Job Enrichment
Fatalism
Performance – Reward Contingency
Malleability
Empowering
Supervision
Power Distance Proactivity Job Enrichment

5. 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.

6. Relationship Oriented Cultures Performance Oriented Cultures
(e.g., collectivistic)
Performance Oriented Cultures
(e.g., individualistic)
Preference to informal and network-based recruitment.
Preference for formal, structured and widespread use of recruitment channels.
Criteria used in recruitment, selection, and performance appraisal emphasize ability to maintain good interpersonal relationships and work in harmony with others.
Criteria used in recruitment, selection, and performance appraisal emphasize job-related 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 in need assessment for training, career planning, and compensation and reward management emphasize loyalty
Criteria used in need assessment for training, career planning, and compensation and reward management emphasize performance outcomes and merit
Social events motivate people. Rewards like praise from the supervisor and social acceptance motivate people.
Rewards like individual awards, recognition, and bonuses for good performance motivate people.
Teamwork may be difficult if people cannot get along well with each other. There is more likelihood of social loafing.
Teamwork may be difficult due to interpersonal competition and need for individual recognition.

7. Hierarchical Cultures
Egalitarian Cultures
Differential criteria and methods 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, training and development need assessment, and compensation and reward management emphasize good interpersonal relationships with higher management, tenure in the organization, and seniority
Criteria used in recruitment, selection, performance appraisal, training and development need assessment, and 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

8. Flexibility; belief in
Inflexibility; lack of belief in
change and development
Flexibility; belief in
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
Not-so-strong emphasis on training and development
Strong emphasis on training and development
Low performance-reward contingency
High performance-reward contingency
Employee security plans
Equity principle in compensation and reward management; individual bonuses / commissions