Culture can be defined as a way of living of people which is affected by their values, beliefs, attitude, art and science, modes of perception, thoughts and activities. In this way, culture explains how an individual live and behave in an environment and how his/her thoughts and perception are molded which affect the mutual relationship between individual and environment in which he/she lives. Things were easily manageable with less diversified workforce, but globalization has changed the scenario altogether, and this phenomenon has accentuated the cultural differences within the organization affecting the performance of it. Human resource practices like training, staffing have a significant impact due to cultural differences.
Now days, human resource is considered the most significant and difference making aspect of organizations and number of activities are undertaken, and lots of programs are implemented to increase the productivity of employees by supporting and accommodating employees ever changing needs. In this regard, the importance of organizational culture has increased manifold. Number of studies has been taken to assess the impact of culture on human resource management. Corporate culture and national culture both have impact on organization and so on the employee’s performance. Multinational companies are busy promoting corporate culture improving control, integrating and coordinating their subsidiaries spread over the entire globe. Yet these subsidiaries operate in different national culture, creating problems in implementing and accepting unified human resource practices and policies like compensation system, selection and socialization and planning appraisal. In past three decades, corporate culture has earned much attention, and many books such as In Search Of Excellence (Peter & Waterman, 1982) and Corporate Culture (Deal & Kennedy, 1982) have hit the market, and many eager and energetic executives benefitted from such literature. While there are strong evidences to suggest the direct link between companies performance and corporate culture, but such link is still debatable and may be challenged. Every environment demands different strategies, and the true test of organizational culture is to streamline with these strategies. MNC is, therefore, mindful to pay attention to the fitness of corporate culture within their subsidiaries operating in different national cultures to smooth implementation, especially HRM strategy.
Table of Contents
1. Introduction
2. Literature review
3. Description and analysis of personal experience
4. Conclusion
Research Objectives and Key Topics
This paper aims to assess the potential conflicts between organizational culture and the national culture of a local subsidiary, with a specific focus on the implications for human resource management practices in multinational corporations.
- The impact of cultural dimensions on HR management policies.
- Challenges of managing cultural diversity in global subsidiaries.
- The role of transformational leadership in cross-cultural settings.
- Empirical analysis of cultural distance and organizational performance.
- The concept of "culture fit" in international business environments.
Excerpt from the Book
Literature review
Culture matters because it is a powerful, latent, and often unconscious set of forces that determine both our individual and collective behavior, perception, thought patterns and values. (Ruth Alas et al, 2008, pp. 50) It is difficult to give a standard and universal definition of culture because there are multiple definitions, and this ambiguity is further increased by the number of disciplines involved in this topic. This wide and broad explanation does not necessarily help to increase clarity. Therefore to keep thing clear the model developed by Schein (1985) is discussed to define culture. According to this model, culture is represented at three levels: 1) behavior and artifacts; 2) beliefs and values; 3) underlying assumptions. These levels are placed in such a way that shows their visibility like behavior and artifact are easy to observe while underlying assumption are difficult to interpret. This model can help to understand both corporate and national culture. However, Laurent (1986) argues that corporate culture can change the first two levels, but it has little impact on underlying assumptions, which is mostly reflected in national culture. This raises the issue that whether company’s values, behavior and beliefs are merely complied with or truly incorporated. This is specifically relevant for human resource professional regarding motivation, dedication, commitment and the promotion of employees. The underlying assumptions define ways of perceiving, thinking and evaluating the self, world and others. The relationship of individual with nature and other human being is all part of underlying assumptions.
Summary of Chapters
1. Introduction: This chapter defines culture and its growing importance for human resource management within the context of globalization and diversified workforces.
2. Literature review: This section examines theoretical models of culture, such as Schein's three-level model, and explores the link between national culture, corporate culture, and HR practices.
3. Description and analysis of personal experience: The author provides a practical case study based on personal experience as a sales agent to illustrate the tangible challenges and conflicts arising from cultural differences in customer service.
4. Conclusion: The paper summarizes that cultural differences significantly impact HRM and emphasizes the necessity for multinational organizations to develop culturally sensitive HR strategies.
Keywords
Human Resource Management, Organizational Culture, National Culture, Cultural Diversity, Globalization, Cultural Distance, Multinational Corporations, HR Practices, Workforce, Cultural Fit, Transformational Leadership, Employee Performance, Cross-cultural Management, Strategic HRM, Behavioral Psychology.
Frequently Asked Questions
What is the primary focus of this research?
This paper examines how organizational culture interacts with the national culture of local subsidiaries and the resulting impact on human resource management practices.
What are the central themes discussed in the work?
The core themes include cultural diversity in the workplace, the challenges of managing global subsidiaries, the influence of national values on HR policies, and the concept of culture fit.
What is the main research objective?
The goal is to assess potential conflicts between corporate headquarters' policies and the local national culture, specifically regarding how these conflicts influence HR effectiveness.
Which scientific methodology is applied?
The work utilizes a literature review of existing cultural models combined with an empirical analysis of multi-country studies and a qualitative reflection on personal professional experience.
What topics are covered in the main section of the paper?
The main section covers the definition of culture, theoretical frameworks like Schein’s model, the influence of culture on HR strategy, and specific case studies involving US, Korean, and Taiwanese subsidiaries.
Which keywords best characterize this publication?
The paper is characterized by terms such as Human Resource Management, Cultural Diversity, Globalization, Cultural Distance, and Strategic HRM.
How does cultural distance affect the autonomy of a subsidiary?
High cultural distance often forces subsidiaries to adapt to local norms, though this is frequently constrained by rigid, centralized policies authorized by the headquarters.
What role does transformational leadership play in managing cultural diversity?
Transformational leadership is identified as a critical factor in identifying internal and external changes and adapting organizational culture to manage diversity effectively.
What did the author learn from their personal experience as a sales agent?
The author observed that individuals, regardless of the situation, often prioritize their own cultural values, which can lead to friction when those values are not understood or respected in a business interaction.
- Citation du texte
- Richards Macdonald (Auteur), 2011, Cultural Impact on Human Resource Management, Munich, GRIN Verlag, https://www.grin.com/document/214974
