The Affect of National Culture on Human Resources Essay -- Human Resour

INTRODUCTION In today’s business environment, the complexity of international business has increased and international competition has been highlighted as an essential element for multinational firms (MNCs). Thus, in order to gain competitive advantage, various resources are utilized, such as financial capital, technology location or human resource (HR). Moreover, HR could be seemed as one of the most important resource which has also become a focus of attention of senior managers in MNCs. As suggested by MacMillan(1984), MNCs can gain competitive advantage through use of HR practice, such as training, compensation, socialization, selection, performance appraisal and career development, as long as other firms are unable to duplicate their efforts easily and quickly. However, while HR practices and policies are performing across countries, culture would be a key point. Culture can be defined not only at the national, but also at the group, organizational, and even international level. All t hese cultures have certain effects on the choice and efficiency of HR policies and practices. Between national and other types of culture, therefore, need to be divided clearly because national culture makes a unique contribution to understanding HR policies and practices. Therefore, there is no doubt that national culture is a key factor on HR practices or polices, as a functional activity in international business. In this paper, the role and effects of national culture in HR will be discussed firstly. And then the potential problems that MCNs may have if they do not consider national culture as a key factor in HRM success. In the final stage, the solution of those problems will be presented in this paper. THE ROLE OF NATIONAL CULTURE IN HU... ...aeger, A. M. (1986) ‘Organization development and national culture: Where's the fit? , ‘ in Academy of Management Review, Vol. 11, Iss. 1, pp. 178-190. Hill, C.W.L. (2005) International Business: Competing in the Global Marketplace (5th ed.), New York: Mc Graw-Hill/Irwin Hofstede, G. (1993) ‘Cultural constrains in management theories,’ in Academy of Management Executive, Vol. 7, Iss. 1, pp. 81-93. MacMillan, I. C. (1984) ‘Gaining competitive advantage through human resource management practice,’ in Human Resource Management, Vol. 23, Iss. 1, pp. 241-255. Punnett, B. J. & Ricks, D. A. (1992) International business, Boston: PWSKent. Schuler, R. S. & Jackson S. E. (1994) ‘Convergence or divergence: Human resource practices and policies for competitive advantage worldwide,’ in International Journal of Human Resource Management, Vol. 5, Iss. 2, pp. 267-99. The Affect of National Culture on Human Resources Essay -- Human Resour INTRODUCTION In today’s business environment, the complexity of international business has increased and international competition has been highlighted as an essential element for multinational firms (MNCs). Thus, in order to gain competitive advantage, various resources are utilized, such as financial capital, technology location or human resource (HR). Moreover, HR could be seemed as one of the most important resource which has also become a focus of attention of senior managers in MNCs. As suggested by MacMillan(1984), MNCs can gain competitive advantage through use of HR practice, such as training, compensation, socialization, selection, performance appraisal and career development, as long as other firms are unable to duplicate their efforts easily and quickly. However, while HR practices and policies are performing across countries, culture would be a key point. Culture can be defined not only at the national, but also at the group, organizational, and even international level. All t hese cultures have certain effects on the choice and efficiency of HR policies and practices. Between national and other types of culture, therefore, need to be divided clearly because national culture makes a unique contribution to understanding HR policies and practices. Therefore, there is no doubt that national culture is a key factor on HR practices or polices, as a functional activity in international business. In this paper, the role and effects of national culture in HR will be discussed firstly. And then the potential problems that MCNs may have if they do not consider national culture as a key factor in HRM success. In the final stage, the solution of those problems will be presented in this paper. THE ROLE OF NATIONAL CULTURE IN HU... ...aeger, A. M. (1986) ‘Organization development and national culture: Where's the fit? , ‘ in Academy of Management Review, Vol. 11, Iss. 1, pp. 178-190. Hill, C.W.L. (2005) International Business: Competing in the Global Marketplace (5th ed.), New York: Mc Graw-Hill/Irwin Hofstede, G. (1993) ‘Cultural constrains in management theories,’ in Academy of Management Executive, Vol. 7, Iss. 1, pp. 81-93. MacMillan, I. C. (1984) ‘Gaining competitive advantage through human resource management practice,’ in Human Resource Management, Vol. 23, Iss. 1, pp. 241-255. Punnett, B. J. & Ricks, D. A. (1992) International business, Boston: PWSKent. Schuler, R. S. & Jackson S. E. (1994) ‘Convergence or divergence: Human resource practices and policies for competitive advantage worldwide,’ in International Journal of Human Resource Management, Vol. 5, Iss. 2, pp. 267-99. The Affect of National Culture on Human Resources Essay -- Human Resour INTRODUCTION In today’s business environment, the complexity of international business has increased and international competition has been highlighted as an essential element for multinational firms (MNCs). Thus, in order to gain competitive advantage, various resources are utilized, such as financial capital, technology location or human resource (HR). Moreover, HR could be seemed as one of the most important resource which has also become a focus of attention of senior managers in MNCs. As suggested by MacMillan(1984), MNCs can gain competitive advantage through use of HR practice, such as training, compensation, socialization, selection, performance appraisal and career development, as long as other firms are unable to duplicate their efforts easily and quickly. However, while HR practices and policies are performing across countries, culture would be a key point. Culture can be defined not only at the national, but also at the group, organizational, and even international level. All t hese cultures have certain effects on the choice and efficiency of HR policies and practices. Between national and other types of culture, therefore, need to be divided clearly because national culture makes a unique contribution to understanding HR policies and practices. Therefore, there is no doubt that national culture is a key factor on HR practices or polices, as a functional activity in international business. In this paper, the role and effects of national culture in HR will be discussed firstly. And then the potential problems that MCNs may have if they do not consider national culture as a key factor in HRM success. In the final stage, the solution of those problems will be presented in this paper. THE ROLE OF NATIONAL CULTURE IN HU... ...aeger, A. M. (1986) ‘Organization development and national culture: Where's the fit? , ‘ in Academy of Management Review, Vol. 11, Iss. 1, pp. 178-190. Hill, C.W.L. (2005) International Business: Competing in the Global Marketplace (5th ed.), New York: Mc Graw-Hill/Irwin Hofstede, G. (1993) ‘Cultural constrains in management theories,’ in Academy of Management Executive, Vol. 7, Iss. 1, pp. 81-93. MacMillan, I. C. (1984) ‘Gaining competitive advantage through human resource management practice,’ in Human Resource Management, Vol. 23, Iss. 1, pp. 241-255. Punnett, B. J. & Ricks, D. A. (1992) International business, Boston: PWSKent. Schuler, R. S. & Jackson S. E. (1994) ‘Convergence or divergence: Human resource practices and policies for competitive advantage worldwide,’ in International Journal of Human Resource Management, Vol. 5, Iss. 2, pp. 267-99.