International human resource management (IHRM) is concerned with human resource management on a global scale (Cascio and Bailey, 1995; Gannon, 2002; Scullion et al., 2007). The objectives of IHRM are to help the company, and the multinational enterprise (MNE) be successful on a worldwide. The proposed research for international human resource management (IHRM) is well defined by many scholars. This essay aims to get a greater knowledge of the IHRM’s aspects such as cultural, institutional, and global methods to researching IHRM approaches. In addition, this paper will have an examination about claim that “globalization means that eventually HR policy and practice will converge into a single ‘best practice’ everywhere in the world”, and how the globalization statement has affected HR policies and its impacts on global HR. Thus, the multicultural differences and communications issues remain wellthoughtout as the most essential crucial concerns that should be handled by suggesting an effective and wellplanned strategy for achieving acceptable remedies for the situation.
THEORETICAL APPROACHES TO STUDYING INTERNATIONAL HUMAN RESOURCE MANAGEMENT STUDENT ID: 001131616 Table of Contents INTRODUCTION DIFFERENT APPROACHES TO STUDYING INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM) CRITICAL EXAMINATION OF THE CONVERGENCE - DIVERGENCE CONTROVERSY CONCLUSIONS REFERENCE LIST APPENDIX 13 INTRODUCTION International human resource management (IHRM) is concerned with human resource management on a global scale (Cascio and Bailey, 1995; Gannon, 2002; Scullion et al., 2007) The objectives of IHRM are to help the company, and the multinational enterprise (MNE) be successful on a worldwide The proposed research for international human resource management (IHRM) is well defined by many scholars This essay aims to get a greater knowledge of the IHRM’s aspects such as cultural, institutional, and global methods to researching IHRM approaches In addition, this paper will have an examination about claim that “globalization means that eventually HR policy and practice will converge into a single ‘best practice’ everywhere in the world”, and how the globalization statement has affected HR policies and its impacts on global HR Thus, the multicultural differences and communications issues remain well-thought-out as the most essential crucial concerns that should be handled by suggesting an effective and well-planned strategy for achieving acceptable remedies for the situation DIFFERENT APPROACHES TO STUDYING INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM) To begin with, International human resource management, which was described as a discipline in its infancy in the 1980s (Laurent, 1986), has rapidly developed from adolescence to maturity thanks to global change There are three key topics that have a direct influence on global human resource management (IHRM), which include cultural, institutional, and globalisation aspects Firstly, Boyacigiller and Adler (1991) put it "the 'cultural' idea of 'human resource management' and its practically universal expansion seem to symbolise globalisation at the greatest pinnacle of Western pre-eminence in the globe" In addition, globalization phenomenon seen as ‘varieties of capitalism’ and their institutional contexts lead to different HRM and employment relations outcomes in different countries (Hall and Soskice, 2001), and this phenomenon is often seen as an unavoidable trend of growing functional integration and geographic expansion of economic activity (Dicken, 2015) It is critical to recognize the potential impact that national culture dimensions may play in virtually every functional area of human resource management, especially, the cultural aspects Culture is defined as the "pattern" of a group of people's actions in society, both explicit and tacit (Kroeber and Kluckhohn, 1952; Hornby, 2009) Alternatively, it may be viewed as a collection of societal standards of conduct that includes beliefs, conventions, arts, habits, and it shapes everything (Hickson and Pugh, 1995; Tylor, 2016) Numerous researchers have compared culture to "Iceberg", which is an apt metaphor for human society's cultural variety (Appendix 1) Visible factors are a small part of the "artifacts" iceberg In other words, the cultural characteristics that can be seen and researched represent just a tiny portion of culture; the human component remains unknown As a result, cultural characteristics such as conduct, habits, and attire are seen as minor, and they have little bearing on a society's values and beliefs (Schein, 1989) Moreover, scholars have suggested cultural models in order to be able to assess the variations between cultural characteristics, such as “Symbolic interactionism” (Hall, 1992), which is a reference system that measures interacting individuals to generate symbols of society, or Trompenaars' model of national cultural differences (Smith, Dugan, and Trompenaars, 1996) The most notable of which is psychologist Hofstede's study model of cultural dimensions (Hofstede, 1984) This study was based on an investigation of the effect of culture on individuals in social groups, including an initial survey of 116,000 IBM employees from 40 different countries Individualism/collectivism, uncertainty avoidance, power distance, and masculinity were initially proposed as four elements of cultural values in Hofstede's model of cultural dimensions Then, in response to independent research in Hong Kong, Hofstede added a fifth dimension, long-term orientation, to include elements of values that were not covered in the original paradigm Hofstede introduced a sixth component, indulgence vs self-control, in 2010 Hofstede's concept of cultural dimensions is stated in six dimensions Power Distance is the first of Hofstede's dimensions to be addressed (PD) This defines the extent to which less powerful members of a country's institutions/organizations expect and tolerate unequal power distribution (Hofstede, 1991) Power will be centralized in leaders, as it is in organizations, which has been referred to as 'paternalism' (Purcell, 1987) The second element is Individualism–collectivism This dimension implies two opposed ends of a continuum, thus the opposite of high levels of individualism would be high levels of collectivism (Hofstede, 1991) Next one, Uncertainty avoidance is the third component in Hofstede's cultural model Hofstede defined this characteristic as the degree to which people of a culture feel frightened by ambiguous or uncertain events (Hofstede,1991) In addition, Masculinity–Femininity, like Individualism–Collectivism, displays a contradiction between two cultural characteristics This cultural dimension demonstrates the distinction between men's and women's positions in society The fifth feature of Hofstede's paradigm is the Long-term and Short-term orientation, which depicts the relationship between the past, present, and future actions/difficulties Finally, Indulgence vs Constraint is the last part of this cultural construct According to society's norms, people have varying degrees of control over how they may meet their basic human requirements For the purpose of having fun and delighting in life, indulgence is defined as "a culture that enables the relatively unfettered fulfilment of basic and natural human needs" (Hofstede, 1991) Critique Of Hofstede’s Cultural Dimensions Hofstede's cultural model is founded on two principles: common individual national culture, since nations are sub-culturally different, and statistical average, without which culture will not be based on the ideas of each individual in a society (Hofstede, 1980) By comparing different features of cultures, it may be claimed that Hofstede's concept of cultural dimensions gives a clear framework for countries Several organizational managers assert that the Hofstede model successfully compares different cultures in different regions, and researchers have used and embraced Hofstede's model of cultural research (Furrer, 2000; Ross, 1999; Sndergaard, 1994) Cultural studies were conducted by a small number of scholars in the 1980s Businesses were attempting to integrate into the global market during the time, but encountered several challenges due to cultural differences Scholarly interest has been shifted to this period's culture, and Hofstede is regarded as a pioneer and trailblazer (Sndergaard, 1994) His research approach is built around a wellstructured, methodical, and theoretical survey questionnaire, and also confirmed the relative correctness of Hofstede's cultural model when he compared similar research to Hofstede's As a result, Hofstede's approach has become the de facto "standard" for comparing national cultural monuments and serves as the foundation for corporate development and internationalisation decisions However, an army of researchers have protested that Hofstede's model is nonetheless riddled with dangers, as are interpretations of the model's cultural components The variety of techniques in the research procedure is one of the objections leveled towards Hoftstede's cultural model As a result, the cultural dimensions research model solely concentrated on the study based on the setting in the West (Kim, 2007) Hoftstede, for example, has only studied 40,000 IBM employees, and he has only chosen one individual as a gauge for a culture that has raised many issues about the reliability and accuracy of the tissue Picture (Mcsweeney, 2002) In this part, we shall examine the conflicts in various areas of Hoftstdede's cultural paradigm According to the Power Distance Index, paternalism may reflect actions that include strong management care for employee welfare as well as morality under a highly authoritarian leadership style (Cheng et al, 2004) They claim that Hofstede was referring to public perception from the standpoint of Westernization, with the 'low PDI' side superior to the other, and vice versa from the Eastern cultural perspective, with the 'high PDI' side superior (Fougere and Moulettes, 2007), in certain situations, these two variables can coexist (Triandis, 2004 and Kim et al., 1995) Furthermore, observations suggesting nations with low UA have high rates of innovation have been used to throw uncertainty avoidance into doubt (Shane, 1993) When measuring unknown aspects like as stress levels, trust, and the study participants' rules, Hofstede's research approach is questions (Farmer et al., 1984) On the other side, the Hofstede’s component of Masculinity–Femininity has been defended since it does not address gender dominance (Jones, 2007) Bond (1987) also discovered ambiguity in cultural aspects of a civilization based on people's attitudes, beliefs, and behavior in that community It has also suggested by Leung and collegues (2005), defining national cultures is a key meaning of IHRM Cultural factors will also have an impact on multinational human resource management operations (Stone et al 2007) Understanding the influence of certain components of ethnic culture on HRM priority content in a certain nation is critical for MNCs when creating their IHRM system Despite the fact that Hofstede's model has many critics, components of this cultural model have assisted businesses in gaining the broadest picture from cultural variables as well as comparisons Managers should not make internationalisation choices exclusively on the basis of the Hofstede model, but rather a complete study and evaluation of the local culture CRITICAL EXAMINATION OF THE CONVERGENCE - DIVERGENCE CONTROVERSY Human resource management (HRM) has the main function of building human resources for organizations (Boxall & Purcell, 2003) However, approaches to HRM models differ greatly between enterprises and nations (Sparrow et al., 1994; Brewster & Mayrhofer, 2012; Kaufman, 2014) IHRM is closely connected to comparative HRM (CHRM), which contends that "HR policy and practice will converge into a single 'best practice' everywhere in the globe." The argument will take place in this area As a result of globalization, discussions on IHRM are becoming either convergent, or increasingly divergent, depending on geographical areas The concept of CONVERGENCE-DIVERGENCE in global HRM practice is a critical theoretical problem The center serves as a link between the two fields (Poor et al., 2011) A key topic is whether HRM systems and individual behaviors are growing more similar or different over time and in different countries and regions Convergence and divergence are often thought to be two competing paradigms, despite the fact that empirical data tends to offer a mixed conclusion on the matter (Tregaskis & Brewster, 2006; Dewettinck & Remue, 2011) There are several policies and practices that may be employed to enhance integration, employee commitment, flexibility, and job quality, as well as wider business objectives such as modifying organizational values, structure, productivity, and delivery systems (Brewster and Tyson, 1991; Sparrow, 1994) In the United States, it is often known as the 'universalist paradigm' (Mustafa, 2005), has been frequently used to leadership According to this idea, communist and capitalist economies are becoming increasingly similar Scholars who formerly endorsed include Max Weber, who argues that an individual's behaviors are molded by society's activities, a phenomenon known as social imitation collaboration (Weber et al., 2012) Similarly, as a "logic of industrialism," productive technical forces will produce commonalities in organizational structure as well as economic processes (Kerr and Haddon, 1973) For instance, several human resource management models are extensively used around the globe The Key Performance Indicator (KPI) performance measurement and assessment methodology has been extensively adopted around the globe, resulting in similar management practices across nations (Marr, 2012; Parmenter, 2007) These components results in general management paradigms, particularly in the United States (Lucas et al., 2012), when the United States is a development leader, other nations will emulate management models from American corporations (Brewster et al., 2016) On the other hand, emphasizes variances in development phases and practical application while aiming towards a unified goal This idea is mostly based on two factors: culture and institutions (Proven by Rowley and Benson, 2002; Hofstede, 1984) The distinctions between cultures will then affect the collective beliefs and actions of a community or a country (Tayeb, 1998; Gill and Wong, 1998) Some proponents of the Divergence have suggested that many cultures have diverged as a result of the growth of cultural globalization, which is considered as a contributor to the degradation of cultural values (Suda, 2007); whereas others have maintained that culture is difficult to modify (Uttal, 1983; Meyer and Zucker, 1989) As a result, the differences in political institutions and cultural traits in each nation will influence the technique of human resource management, and there is no optimal approach to human resource management For all scenarios, it is critical to understand agility and adapt systems to diverse circumstances in order to get the required results (Aydinli, 2010) Globalization has resulted in an increase in the interconnection and mutual awareness (reflexivity) of economic, political, and social entities around the globe, as well as having global HR implications (Guillén, 2001) Even however, discrepancy for the purpose of establishing a single culture or political system across the globe is insufficient Therefore, there will not be a single "best practice" or “best fit” applied in IRHM, which needs to be integrated depending on the actual situation in each country Convergence is one of the repercussions of globalisation, since it has created a borderless globe (Ohmae, 2002) The argument for convergence was initially articulated in (Kerr,1973) Comparable tendencies in IHRM policies have been progressively formed through cultural, economic, and political interactions The best practices are always preferable to the alternatives and should be implemented everywhere, regardless of industry or geographic location (Delery and Doty, 1996) Firms are able to quickly spread innovative management concepts and practises In many countries, multinational corporations (MNCs) play a significant role On a broader scale, American culture, or "Americanization," has steadily influenced worldwide cultural trends According to some human resource academics, the best general human resource strategy, when implemented by businesses, results in improved corporate performance (Huselid, 1995) Other experts suggest that the growing prevalence of similarities impairs MNEs' competitiveness This has been highly debated since its efficiency will be constrained by the country's unique cultural and political conditions (Sparrow, 2017) Due to the fact that behaviour and culture have been ingrained in cultures and cannot be altered by any organisation (Hofstede, 1994) Despite the writer's discovery of cross-national variances, the trend toward convergence seems to be irreversible Numerous governments intervene to support the preservation of native cultural characteristics in addition to global integration Cultural differences may need changes in human resources management techniques and policy Both convergence and divergence occur, and considering these two viewpoints separately would be an oversimplification of the corporate world and its relationship to IHR management When it comes to HR management, there will always be a plethora of questions to be asked about the efficacy of the best practises that are now in use throughout the world CONCLUSIONS A significant challenge for HR managers in a new and unpredictable global context is how to react to change in the most acceptable manner This essay's first section discusses the approach in IHRM via the cultural component, namely Hofstede's cultural model This model has shown the variances in cultural aspects between nations, which are essential in IHRM for MNEs However, Hofstede's cultural model has several drawbacks, such as the limiting of the individuals participating in Hofstede's study, as well as the model's trustworthiness when our culture is visible regarded as an "iceberg" The following section outlines current developments in IHRM via a study and evaluation of "convergence - divergence." 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