1. NATIONAL DIFFERENCES IN HRM: KNOWING WHEN AND HOW TO ADAPT
CHAPTER 12
NATIONAL DIFFERENCES IN HRM:
KNOWING WHEN AND HOW TO ADAPT

2. WHY TO NATIONS DIFFER IN HRM?

3. Exhibit 12.1
The National Context and HRM

4. SOCIAL INSTITUTIONS
Include the family, educational, economic, and the political and legal systems
Closely linked with national and business culture

5. THREE TYPES OF ISOMORPHISM
Coercive
Mimetic
Normative

6. THE NATIONAL CONTEXT AND KEY BUSINESS PRACTICES
Education and training of labor pool
Laws and cultural expectations for selection practices
Types of jobs favored

7. The national context and key business practices, continued
Laws and cultural expectations of fair wage and promotion criteria
Laws and traditions regarding labor relations

8. RESOURCE POOL
The resource pool represents all the human and physical resources available in a country - both from natural and induced factor conditions

9. RECRUITMENT
Attract qualified applicants

10. US RECRUITMENT STRATEGIES
Open and public
See Exhibit 12.3

12. KOREAN RECRUITMENT: A COLLECTIVIST APPROACH
Backdoor
School contacts

13. SELECTION

14. THE US APPROACH TO SELECTION
Match skills and job requirements
Universalistic criteria
See Exhibit 12.4

16. SELECTION IN COLLECTIVIST CULTURES
The in-group
Preference for family
Value personal characteristics
High school and university ties substitute for family membership

17. IMPLICATIONS FOR THE MULTINATIONAL
Managers must follow local norms to get best workers
Often a tradeoff with benefits of home country practices

18. TRAINING AND DEVELOPMENT

19. DIFFERENCES IN TRAINING AND DEVELOPMENT
Result from:
differences in educational systems
values regarding educational credentials
cultural values regarding other personnel practices

20. Exhibit 12.5 shows training systems used in different countries

22. Exhibit 12.5 shows skills taught by U.S. organizations

24. VOCATIONAL EDUCATION IN GERMANY
Standardized national system = a well trained labor force
Affects over 65% of 15 to 16 year olds
Collaboration of employers, unions, and state
See Exhibit Dual system

26. MANAGEMENT DEVELOPMENT: U.S.A.
Senior level managers often identify managerial potential
Appraisals of managerial readiness
Assessment centers
Mentoring
"Fast track" careers

27. MANAGEMENT DEVELOPMENT: TRADITIONAL JAPANESE STYLE
Recruits directly from universities
Join the company as a group
Selected on personal qualities and fit with the corporate culture
Mutual commitment of permanent employment

28. Management development: traditional Japanese style, continued
Similar pay and promotion for first ten years - age seniority
Informal recognition of those high performance managers

29. SHIFITING SOCIAL INSTITUTIONS: PRESSURES FOR CHANGE
Asahi ties promotions to evaluations
Matsushita uses merit pay for managers
Honda is phasing out seniority

30. IMPLICATIONS FOR THE MULTINATIONAL
Examine feasibility of exporting training
IHRM orientation affects training needs of local managers
Locations advantages - see Exhibit 12.9

32. PERFORMANCE APPRAISAL
Identifying people to reward, promote, demote, develop and improve, retain, or fire

33. U.S. PERFORMANCE APPRAISAL SYSTEM
Performance standards
Performance measures
Performance feedback
Human resources decisions
Must meet legal requirements

34. PERFORMANCE APPRIASAL IN COLLECTIVIST CULTUES
Managers work indirectly to sanction poor performance
Often avoid direct performance appraisal feedback

35. COMPENSATION
Wages and salaries, incentives such as bonuses, and benefits such as retirement contributions

36. COMPENSATION IN THE U.S.
Wages and salaries differ based on two major factors
external
internal

37. COMPENSATION IN JAPAN: TRADITIONAL APPROACH
Base salaries for positions
Skill and educational requirements
Age
Marital status and family size may count
Bonuses

38. NEW MERIT (Japanese style)
Can affect pay raises to a greater degree the traditional position/seniority system
Does not match the Western view - Nenpo
Stresses attitudes as much as performance

39. EX 12.10 THE JAPANESE PAY RAISE FORMULA

40. EVALUATION/COMPENSTATION: Implications for the Multinational
Match HRM orientation
Seek location advantages in wages
See Exhibit next

42. A COMPARATIVE VIEW OF LABOR RELATIONS

43. PATTERNS OF LABOR RELATIONS DEPEND ON:
Historical factors
Ideology reasons
Management views of unions

44. UNION MEMBERSHIP DENSITY
Germany: estimated 40% belonged to trade unions
U.S.A.: 14.2% nonagricultural workforce--down from a high of over 35% in the early 1940s
Denmark: over 80% unionized
Great Britain: approximate 50% unionized

45. SOME HISTORICAL UNION DIFFERENCES
German
formalized, legalistic
bargaining centralized between large unions and large corporations
works council

46. French--militant/strong ideologies
U.S.--"bread and butter" issues--wages, benefits, and working conditions

47. UNION STRUCTURES Enterprise Craft Industrial Local Ideological
White collar/professional

48. IMPLICATIONS FOR THE MULTINATIONAL
Must deal with local labor practices
A factor in location choice - see Exhibit 12.16

49. EXHIBIT WHO GETS ALONG?

50. CONCLUSIONS
National context and HRM
contrasts between individualist U.S. v. collectivist
Recruitment and selection
Training and development
Performance evaluation and compensation

51. Unionization
Implications for location decisions