Human resource management issues and practices

In this chapter we explore international human resource issues that arise in the
context of subsidiaries and join ventures. First, we discuss culture and cultural
differences that must be considered as firms operate in foreign markets. Then, we
discuss how firms must formulate and implement human resource management
practices within this international context. Then, our discussion centers on the
issues of deploying US managers overseas and setting up human resource
management practices at foreign locations.
Understanding cultural differences
What is culture
Many people think of culture as the aesthetic side of life; that a countrys culture is
reflected in tangible things like dance, music, painting, clothing fashions, and so on.
Such tangible things do represent superficial aspects of culture, called artifact .
while artifact are the most visible signs of culture, like the tip of an iceberg, they
rest on certain invisible underpinnings, lying beneath the surface namely, values
and assumptions. Artifacts are simply manifestations of the under lying values and
assumptions shared by a group of people. To interpret a cultures artifact, then, one
must first understand the values and assumptions from which they flow.
Values are the rules of societal propriety and impropriety that are shared by people
within a culture. In other words, they dictate which behaviors are appropriate and
which are not. Cultural values are passed down from generation to generation.
People begin learning them from the time they are born. Over time, these values
are continually reinforced by parents, teachers , peers, media, religion and so forth.
Values evolve from society members assumptions about life. Anthropologists
believe that the assumptions held by a society evolve from that societys attempts
to adjust to the world around it. Societies have had to figure out how to best
communicate, educate, feed, clothe, and govern the people within their boundaries.
Over time, through experimentation with differing philosophies, methods, and ideas,
these basic assumptions about life emerge.
Culture and behavior
Culture is a societys set of assumptions, values, and rules about social interaction.
The culture in which one is raised programs the mind to react to the environment in
certain ways. In essence, culture provides people with a mental road map and traffic
signals. The road map depicts the goals tobe reached and the ways to get there; the
traffic signals indicate who has the right of way, when to stop and so on.
In other words, people have within their mind a kind of cultural software . they
dont have to wake up in the morning and figure out how to great people , how to
behave in a classroom, how to dress, how to behave when invited to someones

house, or whether to eat with silverware or their hands. All of this is programmed in,
and people are free to go about their day, pursuing goals within the confines of their
cultures boundaries.
Cross-cultural differences in the workplace
Part of ones cultural software involves rules and expectations about how people are
the act in the workplace. These rules concern such work activities as the following:
-

How
How
How
How
How

interviews should be conducted

managers should act with their subordinates
negotiations should be conducted
new information should be packaged for training purposes
people should be paid for their work

Different cultures work behaviors appear in exhibit 14.1 the exhibit contrasts some
American cultural values with those of another country, and illustrates how different
values lead to different behavioral expectations.
Because of different behavioral expectations , culture sometimes clash. For
example, consider a situation in which a Japanese and American manager, working
for the same company, are trying to resolve a conflict. The japanese abhor
interpersonal confrontation and conflict is a negative part of human life that should
be avoided at all costs. If conflict does occur, it should be resolver in a way that
people will not lose the respect of their peers (i.e., not lose face). Problems in
japan are normally solved behind closed doors, and any potential for public
embarrassment in business negotiations is carefully eliminated in advance.
On the other hand, u.s. culture dictates that conflicts be brought out in the open
and discussed in public, face to face. Imagine the potential problems that arise
when American and Japanese managers try to resolve a conflict situation! Not much
gets accomplished and both parties can wind up frustrated and angry. Yet this is the
very problem many American face when working with the Japanese, because both
sides bring different sets of values to each and every interaction.
How people react to cultural improprieties
Culture allow us to predict fairly accurately how others should behave in a variety
of situations. These who break cultural rules threaten that social predictability.
When cultural rules are violated, people usually feel uneasy, anxious, and
threatened, and the guilty party is often condemned or punished in some manner.
The degree of condemnation depends on two factors : 1) the extent to which the
broken rule is widely shared among a cultural groups members and 2) the extent to
which the rule is deeply held and viewed as being important or sacred. Exhibit 14.2
illustrates different types of cultural rules and the typical condemnation associated
with each.

When working other people from other cultures, then, one must attempt to learn the
rules of that culture and abide by them. Imagine the difficulty of trying to learn all of
this in order to operate according to another cultures norms and values! But that is
just what many. Americans are now having to do. The managers guide offers some
tips for managers who find themselves working in japan.
The use of expatriates
International human resource management often focuses on the plight of expatriate
managers and employees . an expatriate is normally a professional/managerial
employee moved from one country to, and for employment in, another country.
Expatriates often find themselves transported, literally overnight, into new and alien
social and business cultures. Despite these obstacles, such employees are almost
always expected to perform well in their jobs immediately. Unfortunately, many
people do not perform as effectively overseas as they do in their home countries: an
estimated 35 to 70 percent of American expatriates perform poorly in their overseas
jobs.
We now examine how the use of expatriates can enhance competitive advantage.
We then discuss expatriates legal right regarding EEO, and conclude by discussing
specific expatriate related human resource management practices.
The use of expatriates and competitive advantage
As a company becomes involved in overseas subsidiaries or joint ventures, it must
decide whether of fill its key management positions with expatriates or with
managers from the host country. Most firms fill at least some of these positions with
expatriates because, as noted later, expatriate managers can enhance competitive
advantage in at least three areas: succession planning, coordination and control,
and informational needs.