E84 : Human Resource Management Assessment Answers

According to Cho and Payne, one of the crucial factors that determine the success of multinational organizations is the extent to which they can implement their Human Resources practices globally.  Strategies that work in one country may not work well in another country.  Cultural values directly affect organizations who operate globally, specifically whether or not performance management is even considered, how feedback is given, and how feedback is viewed.  If performance appraisals are provided, then they would be influenced by Hofstede’s five dimensions; power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity, and long-term/short-term orientation.     

Performance appraisals are found to be most effective in cultures low on power distance with individualistic values (Cho and Payne, 2016).   An example of this would be if Tesla operates in Norway, Norwegians would be more open to receiving performance appraisals because they are low in power distance and is highly individualistic.  Given the fact that the cultural values of the host country play a specific part in whether or not performance reviews are performed, how they are performed, and how they are perceived, I would have to agree that cultural norms and values influence Human Resource practices of global companies.

Answer:

Response 1: Jana Coltart

You have written a great post with covering all the major points.

It is truly stated by you that cultural aspects and differences are the major determining factors in the performance appraisal and human resource management. It is much important to consider the cultural factors in initiating the effective strategies of human resource management. This is due to the reason that in the process of performance appraisal, generation of the feedback and opinion from the side of the employees will be affected by the differences in cultural aspects (Dusterhoff, Cunningham & Mac-Gregor, 2014). Approach and mentality of the employees from one cultural group will be different from another and thus human resource management strategies can only be effective when these cultural differences can be considered.

However, it should also be considered that in the case of the performance appraisal, not only the cultural differences between the internal stakeholders are important but also the difference between the home and host country. This is due to the reason that cultural differences are more evident between the home and host countries. Thus, the factor of globalization is much relevant in the current approaches of human resource management (Bauer, Matzler & Wolf, 2016). Furthermore the opinion given by you regarding the impact of cultural differences on rewarding the employees is also viable and relevant. This is important in the recent time due to the reason reward techniques are having different approaches. Thus, cultural differences are important to determine in initiating the particular reward approach for the employees.

Response 2: Chanda Kearney

It is good to see that different cultural dimensions of Hofstede are being used to determine the importance of cultural aspects in contemporary human resource management. This is due to the reason that Hofstede’s cultural dimensions are one of the most effective forms of identifying the cultural aspects in the organizational management (Dartey-Baah, 2013). In addition, the discussion of the cultural impact on the global organization is also evident in the recent time due to the reason that majority of the contemporary business organizations are now having their operation in different countries. Thus, the employees also belong from different societies and cultural groups.

However, it should also be considered that there are number of countries, which are having same sort of cultural and social factors. Thus, operating in these countries will have more benefits for the organizations in terms of the cultural aspects (Perlmutter, 2017). It can also be concluded that operating in different countries and regions will not only have challenges for them but also have some sort of opportunities.

You have evaluated the different elements of cultural dimensions from the perspective of performance appraisal such as impact of power distance on effective process of performance appraisals. This is beneficial and relevant in the current business scenario due to the reason that performance appraisal is one of the most intensive and personalized element of the human resource management. Therefore, the more will be the cultural differences, the more difficult will be to initiate the process of performance appraisal.

Reference:

Bauer, F., Matzler, K., & Wolf, S. (2016). M&A and innovation: The role of integration and cultural differences—A central European targets perspective. International Business Review, 25(1), 76-86.

Dartey-Baah, K. (2013). The cultural approach to the management of the international human resource: An analysis of Hofstede’s cultural dimensions. International Journal of Business Administration, 4(2), 39.

Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of business ethics, 119(2), 265-273.

Perlmutter, H. V. (2017). The tortuous evolution of the multinational corporation. In International Business (pp. 117-126). Routledge.