Assessment item 2
Report: Cross Cultural Differences
Length: 2000 words (+/-10%)
Submission method options: Alternative submission method
It has been argued that the same HR practices may not produce the same results in different cultural contexts. Based on this idea, choose TWO of the following HR practices and explain how cultural differences may have an impact.
Support your discussion with at least 12 academic references. Additionally, you may use examples, newspapers articles, company reports, and cases to support your answer.
This assessment task will assess the following learning outcome/s:
The aim of this assignment is to enable you to demonstrate your understanding of challenges companies face in the realm of International HRM. This report also enables you to apply the knowledge and skills you gain in the subject to real life issues in the work environment.
In this study, the cross-cultural differences in respect to human resource management have been described by focusing on the topic of globalisation. The study portraits the anatomy of the cultural differences in the different workplace of different countries. Furthermore, it has also been discussed the implication of human resource management through the two HR practices, i.e, Recruitment and Selection and Training and Development and the impact of these two practices in globalisation. Regarding the whole study, there has a conclusion to evaluate the overall scenario of the cross-cultural differences in global market and recommendation where it is described that what is the solution in regarding cope up with this cross-cultural differences in globalisation era.
Culture is the inherent value, the way of living and overall thought of the surroundings of every human being. Nowadays, many multinational companies recruit people from different cultures and also spread the business on a worldwide basis for operating the business growth to a large extent. Cross-cultural differences arise from the background of the staffs from different cultures. In many workplaces there have been many cultural varieties which have created the conflict in order to reach the sales deadlines, achieving the targets, working in a certain budget structure and many more. In many of the multinational companies, the different beliefs, different attitudes, communication barriers of all employees can enhance the cultural differences. Cultural orientation is required to obtain in the workplace to circulate the workflow of an organisation more effectively. Managing the cross-cultural differences effectively in an organisation can create the progression of the organization in a competitive manner. In order to cope up with this problem, a company is required to depend upon the human resource management. The study is to discuss the internal conflicts of the business culture through the help of the two HR practices and sustain the business productivity and profitability.
Concept: Nowadays, most of the business organisations are trying to achieve the business goal in order to extend the business in the global market. Recruitment and selection process plays a crucial role in every organisation to recruit potential employees from different cultures to dominate the market. In accordance to attract, recruit and hire qualified employees to establish the cost-effectiveness and the productivity of the organisation. Potential candidate’s recruitment and selection can increase the added advantage in the business growth and profitability. In this regard, Adekola & Sergi (2016) stated that the recruitment and selection process has signified to extend the business benefits in accordance with the quality of the employees. Selected employees are required to maintain the objectives of the company. Human resource management must be careful during the process of recruitment and selection as this has been directly affected by globalisation. The wrong kind of selection and recruitment is signified as the total waste of an organisation. Human resource management teams are responsible for this process. A company spends a lot of money on hiring and training the selected employees. Selecting under qualified employees can demotivate and demoralise of the existing staffs which might be affected by the total work potentiality of the organisation. Therefore it is very important for the human resource team to ensure the right amount of recruitment for obtaining the business productivity and profitability.
Working process: Human resource management team of every company manages and organises the recruitment and selection process. For this process, the department of HR management first constructs the specification of the job for developing the criteria of hiring and also the job roles. Then the HR team post the job in a company profile, employee referrals, many job searching site in social media, professional association, hoarding, newspapers. The next stage is to organise the screening of the selecting candidates according to the specified job criteria and profile. After that, the HR team are helping to guide the interviewers during the time of the final selection of the candidates and also prepare the paperwork of offering the application letter of the particular job. The interview process tools of various companies are different. It depends upon the need of the company’s potential and requirements (Al Amer, Ramjan, Glew, Darwish & Salamonson, 2015). The different tools including group discussion test, computer test, skill test, personality test, stress management level test. In addition to globalising the business, a company is required to recruit candidates from other countries to increase the marketability and productivity of the workplace. Human resource management can create the balance among the selected candidates to maintain the friendly atmosphere in the workplace. Cross-cultural differences also increase the knowledge of the employees to know about other culture in a healthy way. It also generates the power of adjustment of the employees.
Impact: Many of the businesses conduct the operational activities globally for achieving their recruitment of the overseas assignments. In order to decrease the communication gap and cut the conflicts of different cultural values recruitment and selection can pay a great impact. The requirement is a process to find the right kind of potential candidate and also involving them in the work culture in such way so that they have not faced any issues regarding cross-cultural differences in the organisation. Since many of the organisations spread their business globally to an extent of the business productivity as well as the profitability hence the companies are required to selecting the right kind of local candidates. According to Ang & Van Dyne (2015), the effective recruitment and selection process can generate a large amount of candidates who are eligible to be selected by the company, however, some of the selective numbers of candidates are chosen. The different culture of people in the organisation can influence both in a positive way and a negative way. Recruitment and selection process has been used to evaluate and understand the candidate’s potentiality and their adaptability of the different culture. The flexibility of the acceptance is very important in the selection process. This process illustrates the recruiters to understand the attitude of the applicants with the help of the principles of human resource management techniques. According to Brewster & Hegewisch (2017), organisational culture pays a great impact in recruiting, selecting and appointing in the workplace. In this regard, it is also to be stated that the inappropriate selection of candidates can cause the poor performance of the company. Maintaining the cross-cultural differences in an organisation can improve the local values of the business. In order to obtain the overall economic environment growth of the organisation the social values, human behavioural development is as important as the internal factors such as financial and marketing statement reports (Epstein, Santo & Guillemin, 2015).
Concept: According to Heine (2015), the employees of every successful organisation must learn to meet the business practices and norms of the organisational cultures. Training and development process is a continuous process. It is not only required to teach the employees who are prepared to be sent in the foreign country to take the organisation in a global platform, however, it also provides to teach them the internal cross-cultural practices in an organisation. In addition to this, the company is required to give the proper training and development session to cut the cross-cultural issues (Jamali, El Dirani & Harwood, 2015). Training and development are very important in order to attain the targeted growth. Lack of training and development can cause the failure of the employee to complete their assignments in foreign countries. It also affected the organisation's overall business in the global market. Many of the US-based companies like American Express does not provide any training to their employees and send them to different countries for overseas assignments. For this reason, the employees can not able to complete the given assignments. In accordance to this failure, US-based companies lose almost $1.5 billion a year (Jeske & Shultz, 2016). During the training and development process, every company is required to teach their employees the flexibility of work adjustment, adaptability of different cultural values, increase the patience level and tolerance level, be very sensitive in according to other cultural differences. The human resource development team are also required to encourage the employee's willpower, give them the motivational speech and also provide them with the techniques to cope up with difficulties and challenges (Jeske & Shultz, 2016).
Working process: Increase in the globalisation of business culture generates the possible outcomes from the marketplace. Therefore to obtain the achievement from the overseas market a company is required to training the employees according to the business needs. The company provides the training and development process in several stages (Larsen, 2017).
Cultural training provides an idea of the business environment as well as the overall environment of the country. First few weeks are very hard for the employee to adopting a new culture and the values. Training and development give a clear knowledge to the employees for understanding the cross-cultural practices in the initial stage. It takes a while for adopting these changes in order to settle down in other countries. Training and development help to enhance the regional skills, economic skills, social skills, political skills of the employees (Marsh et al. 2015).
Communication is a medium for exchanging information and expressing the thought of one person to another person. The gap in communication can make interpersonal conflict in order to contact with the global market. Training in language provides the employee to communicate with other languages. It also adds a value to their personal development skill.
Training in other specific skill is required to teach the employees to increase their power of negotiation, performance appraisal skills and overall management skills (Moore & Jennings, 2017).
On-site training is required to help the employees the overall orientation of globalising in accordance with business growth. For on-site training, the company recruits an employee of another country to provide the knowledge about customs and culture of the host country in order to extend the business in the global market (Rees & Smith, 2017).
Impact: The impact of the training and development generates the argue in order to maintain the awareness of business globalisation. Training and development are required to teach the employees about the business components with regard to cross-cultural practices. The employees are also trained for conducting a business in the global platform. The purpose of training and development is justified for the employees to indulge in a new culture. To a certain extent of globalisation of business, different countries apply different techniques to developing their potential employee base. A company is required to give their employees proper training to help to adopt the different management skills, leadership techniques, different hierarchical techniques (Saucier, 2015). Every employee of a company has gone through the training and development process to understand the business norms, practices and work cultures, style of the systems in both domestic and globalising context. Training and development process itself a very challenging process for the managers of the company. Proper training and development can cut the cross-cultural issues in an organisation. The impact of the development and training process helps to create a larger platform to interact with different co-workers to understand the different culture and practices. Thus many MNCs recruit varieties of the employee from the different country to create the flexible atmosphere in the workplace (Tarhini, Hone & Liu, 2015).
Increase in globalisation in the context of the different business culture in an organisation, human resource development is required to be focused to face the cross-cultural practices. Furthermore, it is very important to add various techniques and up-gradation to adopt different methodologies in the organisation. Through the practice of different technologies in recruitment and selection and training and development, a company is to maintain the cross-cultural hierarchy to enhance the ability of the employees. However, in this globalisation era, the organisation is required to provide proper education to their employees to increase the productivity and cost effectiveness of the business segmentation. In addition to this, a company is required to maintain constructive strategies to manage the internal work management as well as the extension in the overseas market.
In human resource, management culture plays a crucial role in maintaining the management policies and practices. Therefore in order to obtain the cost-effectiveness of an organisation, every company must line up some effective strategies to cut the cultural differences and try to enhance the commitment of all the employees of the organisation. Human resource plays an effective role in an organisation. Human resource management is required to maintain the employee base all over the worldwide with all of the policies and practices. The constant growth of globalisation and recruiting employees with the variety of culture can make a great impact in human resource management policies. In this study recruitment and selection and training and development have been discussed in order to explain the cultural impact in the workplace. The study portraits the pros and cons of cross-cultural difference and also illustrate how human resource management can cut the difference in order to maintain the steady growth of the company with the help of these two HR practices.