Practices in Pakistan

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Modes of convergence and

divergence: an integrative
view of multinational
practices in Pakistan
E. Khilji
Published online: 18 Feb 2011.
To cite this article: E. Khilji (2002) Modes of convergence and divergence:

an integrative view of multinational practices in Pakistan, The
International Journal of Human Resource Management, 13:2, 232-253, DOI:
10.1080/09585190110102350
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Int. J. of Human Resource Management 13:2 March 2002 232–253
Modes of convergence and divergence: an

integrative view of multinational practices
in Pakistan
Shaista E. Khilji
Abstract The last two decades have witnessed an immense growth of globalization
activities, making the study of multinationals a very popular one. However, most of these
studies have focused upon the use of socio-cultural variables to support the divergence
theory or upon contextual and organizational variables to support the convergence theory.
In the present study, it is debated that both sets of variables must be used in combination
to develop a comprehensive understanding of various issues that multinationals face. A
sample of ve multinationals operating in Pakistan is analysed and classi ed as per the
various modes of convergence–divergence proposed by McGaughey and De Cieri (1999)
after an investigation of organizational, socio-cultural and contextual variables. The
conclusion drawn is that both convergence and divergence issues may occur simultane-
ously in the process of human resource management (HRM) change; and that the
variables used to explain them are, in fact, not immutable in nature, as has been assumed
by many.
Keywords Convergence; divergence; human resource management; international man-

agement; multinationals; Pakistan
Introduction
Increased globalization has given birth to the debate about convergence and divergence
in the study of international management. However, ideas seem to bounce from one
extreme to the other. The divergence view, ‘becoming more dissimilar’, (McGaughey
and De Cieri, 1999) proposes that differences among societies result from their
parochial sets of values and that individuals maintain diverse, culturally based values
despite growing economic and social similarities between nations. Indeed, it is a very
popular approach, and management literature is lled with empirical evidence to
support it. Laurent (1991) points out that human resource (HR) practices and
philosophies are deeply grounded in the surrounding national culture. While parent-
country HR managers may desire to apply consistent HR practices across nations in the
interest of fairness or in order to promote a single corporate culture, it is possible that
a certain practice may convey an entirely different and perhaps unintended meaning in
another culture. For example, management by objective (MBO) and open performance
appraisals, based on the Western philosophy of individual competitiveness and
Shaista Khilji, Faculty of Management, Samuel Broneman Building, McGill University,

1001 Sherbrooke St. West, Montreal PQ H3A 1G5, Canada.
The International Journal of Human Resource Management

ISSN 0958-5192 print/ISSN 1466-4399 online © 2002 Taylor & Francis Ltd
http://www.tandf.co.uk/journals
DOI: 10.1080/09585190110102350
Khilji: Modes of convergence and divergence 233
accountability, are viewed as an invitation to open confrontation in Chinese culture.
McEvoy and Cascio’s study (1990) has documented evidence of lower levels of
satisfaction with open appraisals when used in Taiwan. Newman and Nollen (1996), in
their study of the European and Asian work units of one MNC, emphasized the
importance of congruence between management practices and national culture and
concluded that practices should be adapted to the local context to be most effective.
Multinationals are, therefore, advised to take national cultural values as a given and
adjust their practices accordingly in order to be globally competitive. The results of
Schuler and Rogovsky’s study (1998) suggest that culture provides an important
explanation for the variance in the utilization of different practices around the world.
The principal argument is that multinationals (without a doubt the dominant agents in
the world economy) that strive for greater productivity have to take into account a
country’s culture, which is ‘jealously guarded’ (Giddens, 1990: 72). Based upon similar
arguments, many more studies also outline the importance of divergence or preservation
of core characteristics within multinationals (Baldacchino, 1997; Bartlett and Ghoshal,

1989, 1995; Beechler and Yang, 1994; Lu and Bjorkman, 1996; Martin and Beaumont,
1998, 1999; Monks, 1996; Pucik, 1988; Rosenzweig and Singh, 1991; Rosenzweig, and
Nohria, 1994; Wasti, 1998; Whitehill, 1994).
By contrast, the convergence approach, ‘becoming more similar’ (McGaughey and
De Cieri, 1999), proposes that managers around the world embrace attitudes and
behaviours common to managers in other countries, despite cultural differences. Factors
such as globalization, contextual contingencies and business environment are viewed as
cosmopolitan forces leading to more homogeneity among organizations (Ralston et al.,
1993, 1997). Proponents of this approach suggest that traditional contrasts between
countries, as depicted by the cultural effect approach, have been over-emphasized.
Diverse evidence suggests that aspects of work organizations, government policies and
training arrangements have changed substantially over the last decade or so, and
multinationals have been effective in diffusing practices across borders (Kirkman and
Shapiro, 1997; Mueller, 1994; Mueller and Beaumont, 1998; Negandhi, 1987; Woods,
1998). At the same time, contextual changes such as deregulation of the economy have
also brought about a general weakening of cultural effects (Ohmae, 1990), resulting in
the convergence of organizational practices. Insofar as a subsidiary draws resources
from the parent company, its internal structures and processes are substantially
in uenced and shaped by them (Martinez and Ricks, 1989). By drawing resources from
the parent company, a subsidiary’s dependence on the local environment is reduced
(Rosenzweig and Singh, 1991). It has also been argued that multinationals, in their
various forms, are obvious vehicles for cross-border transfers, both directly, as they take
their home-grown policies and practices to their subsidiaries and af liates, and
indirectly, as they become a source of inspiration to local organizations (Tayeb, 1999).
The implication is that globalization and other contextual factors (such as government
regulations and business environment) counteract the cultural effects, and the
presumption that cultural effects are dominant should be open to a modi ed
analysis.
The above review of the literature illustrates that studies have employed three
different sets of variables in order to understand international management issues:
1) socio-cultural variables such as work-related values or national cultures upon which
the divergence theory is built; 2) economic and contextual variables such as the
phenomenon of globalization and deregulation of economies upon which the con-
vergence theory is built; and 3) organizational variables such as parent-company
234 The International Journal of Human Resource Management
control and in uences tend to support a convergence view. McGaughey and De Cieri
(1999) argue that the contrasting ndings are emerging not only because of the isolated
use of these variables but, on a more fundamental level, because of the differing
theoretical perspectives adopted. They also argue that these sets of variables are not
immutable and there is the possibility of change within each. Hence, they suggest that
forces of both convergence and divergence ought to be studied simultaneously. This
seems quite appropriate in the face of signi cant changes that have challenged
traditional management approaches and developed new expectations for organizations
and employees around the world. For example, Khilji (1999a), in her study of Pakistani
employees, reported that the use of the internet, among other factors, had exposed them
to new up-to-date information, making them aware of developments taking place
around the world. As a consequence, their perceptions have changed and they have
developed new expectations to which organizations are gradually responding. She
concludes by re ecting that, had she turned a blind eye to the contextual factors, she
would not have fully understood the phenomenon of change. It has also been argued
that the neglect of one set of factors or the other can often lead to incorrect ndings
(Ralston et al., 1997). Singh (1991; quoted in House et al., 1995: 79) has argued that,
‘If the variables of a theory are correlated with other variables not included in that
theory, then models of the theory will necessarily be incorrectly speci ed and estimates
be biased’.
In accordance with the latter view, that neither the convergence nor the divergence
debate alone is adequate to explain the dynamic interactions between organizations and
their environments, the current study combines organizational and contextual variables
from convergence theory with socio-cultural variables from divergence theory.
Regarding the de nition and selection of these variables, evidence from existing
empirical data was sought and has been explained earlier in this paper. As divergence
theory uses a most limited de nition of culture, i.e., as a set of shared values, this
concept is used for the current study. To examine culture in its broadest sense, including
a discussion of various national factors such as economic and legal aspects, can create
confusion by encroaching upon the domain of contextual variables; therefore, this will
be treated separately, for the purpose of this paper. Hence, the analysis of socio-cultural
variables includes only the work-related values of employees and those key in uences
upon the society that have helped to shape these work-related values. Similarly, as
convergence theory focuses upon the dynamics of globalization and economic policies,
the study of contextual variables includes a selection limited to these factors.
Investigating both socio-cultural and contextual variables was facilitated by an analysis
of previous studies and current government policies; these provide a richer under-
standing of the country-speci c environment. In examining the process of HRM
change, identifying the organizational variables pinpoints factors such as the level of
control exercised by the parent company and the personality of the managers that are
unique to the sample organizations.
An integrative approach was adopted to encompass an effective analysis and to
propose a more comprehensive theory of behaviour in multinationals operating in a
country like Pakistan, where, in the past decade, changes are leading away from
traditional management practices and towards increasing foreign investment by
deregulating the economy, thus facilitating the convergence of management practices.
At the same time, however, Pakistani organizational culture, with a high power
distance, high uncertainty avoidance and high collectivism, is characterized as distinct
(Hofstede, 1980; Trompenaars, 1994; Khilji, 1999b). By resisting the process of
change, this may then act as a divergent force. Such a dilemma is faced by many
developing countries where local cultures are distinct, therefore posing challenges to the
adoption of principles of HRM, yet levels of direct foreign investment have more than
quadrupled since the late 1980s (United Nations, 2000), facilitating the growth of
multinationals and the transfer of management practices across borders. These issues
pose unique problems for organizations that are grappling simultaneously with issues of
convergence with local cultures and divergence from parent-company practices.
However, in the absence of any empirical evidence that combines an analysis of the two
issues, it is not yet clear which force is stronger and what the results will be when they
are studied together.
Hence, the major research questions of the present study are: a) What changes are
taking place in the divergence and convergence factors? b) What set of management
practices would be the result of these changes? And, c) How do employees view the
resultant set of practices? The success or failure of any management practice is
determined by the impact it has on employee outcomes. It is, therefore, important to

understand employee attitudes towards these resultant practices. An in-depth analysis
combining the many convergence and divergence variables, using modes of con-
vergence-divergence proposed by McGaughey and De Cieri (1999), will shed light on
this complex issue. The above discussion has already outlined three sets of variables,
socio-cultural, economic or contextual and organizational, which will be discussed
simultaneously in order to understand their impact and to point out changes in HRM
practices, if any, that may have taken place. Using multiple variables, this study will
facilitate an open and analytical understanding of multinational rms, a perspective that
has been neglected.
This paper will rst lay a theoretical background of modes of divergence-
convergence as proposed by McGaughey and De Cieri (1999) that will be used to
understand the resultant practices at sample multinationals. Second, it will introduce the
research design. Third, socio-cultural and economic variables prevailing in Pakistan
will be reviewed to introduce the context in which the research is situated. Fourth,
organizational variables from the sample multinationals will be outlined to highlight the
impact of parent companies in developing HRM policies. Finally, a discussion of key
issues and limitations of the current research will conclude the study.
Research model: modes of convergence–divergence
As elaborated above, organizations are exposed to a host of in uences at the

organizational as well as the socio-cultural and contextual levels. Recognizing that
market mechanisms are dynamic such that all of these in uences are in a state of
constant change, McGaughey and De Cieri (1999) argue that it is not always one way
or the other for the multinationals, i.e., neither completely convergent nor completely
divergent. They have proposed that, depending upon the degree of in uence of certain
variables, organizations may respond in one of the four different modes of convergence–
divergence dynamics (shown in Figure 1), namely integration, assimilation, separation
and novelty.
Integration is characterized as a ‘melting pot philosophy’ of value formation (Ralston
et al., 1997) or a unique value system that borrows from both national culture and
contextual affects (Ralston et al., 1993). In integration, some core characteristics are
maintained while some alternative practices are adopted. Sparrow et al.’s study (1994)
shows that organizations pursuing truly global operations are likely to pursue practices
Preservation of core characteristics
YES NO
YES Integration Assimilation
Attractiveness of
alternatives
Separation/
NO Novelty
maintenance
Figure 1 Modes of convergence and divergence

that t under one policy umbrella but at the same time adapt to relevant local cultures,
thus maintaining certain core characteristics.
Assimilation occurs when an organization adopts the alternative norms by losing at
least some part of the core cultural characteristics. For example, Khilji’s (1999a) study
of Pakistani organizations reveals that a participatory style of management is gaining
popularity among employees and managers in the private sector, despite the fact that
organizations have traditionally held a high power distance as one of their core
characteristics.
Separation occurs when an organization deliberately avoids alternative practices and
preserves its core characteristics. This has also been referred to as ‘maintenance’ and
de ned as ‘maintaining the level of similarity or dissimilarity’, (McGaughey and De
Cieri, 1999). The failure to use MBO in Chinese cultures, as referred to above, is an
example of separation (McEvoy and Cascio, 1990).
The nal mode, novelty, occurs where neither core characteristics nor alternatives are
retained and, essentially, a novel form of practice is created. In essence, this mode
refers to an organization that has freed itself from all cultural in uences, both
alternatives and core characteristics. Since these modes have been proposed fairly
recently (McGaughey and De Cieri, 1999), there is no evidence setting out the rationale
and the conditions under which an organization may exist in a novel mode. Data from
the present study, hence, may facilitate an understanding of this issue, as they will be
used to categorize sample organizations under each mode.
For the purpose of this study, ‘core characteristics’ will refer to the traditional
management practices that are typical of Pakistani organizations. These will be outlined
in the following section. ‘Alternatives’ will refer to the new HRM practices,1 borrowed
from the world-renowned American or West European parent companies of the sample
subsidiaries.
Research design
In order to assess the impact of culture, business environment and other organizational
variables on adoption of HRM, it was necessary to select a sample of matched
multinationals that were undergoing change such that the roles of each of these
variables could be visibly outlined. For this reason, a total of ve multinationals were
selected (see Table 1) from the banking industry, which, once monopolized by PSEs
Table 1 The sample organizations
Bank Origin of No. of Nationality of Degree of control exercised by No. of

the bank expats CEO/HR the RHO employees
manager
F1 W. Europe 0 Pakistani Broad rules with localizatio n 237

F2 America 2 Pakistani Broad rules with localizatio n 320
F3 America 1 Pakistani Broad rules with localizatio n 757
(Public Sector Enterprise) and known for poor HRM practices (Alam, 1993;
Euromoney, 1994; Klein, 1992; Siddiqui, 1996), has been invigorated since the
deregulation of the economy in the early 1990s. Lauded for creating a healthy
competitive environment, there is also evidence to suggest that transformations in HRM

are taking place in this industry (Bokhari and Graham, 1994; Pakistan and Gulf
Economist, 1995; Unger, 1999).
As the present research is geared towards studying multiple issues, socio-cultural,
contextual and organizational in nature, and exploring employee attitudes, it was
decided to use in-depth interviews as the means to collect data. These interviews
allowed the exibility to probe and illuminate many organizational and cultural
elements that would otherwise have remained hidden. HRM theory is often criticized
for its managerial bias, as it is based upon the views of policy-makers or managers who
naturally praise the very policies they implement (Frey, 1994). Hence, it was decided to
include the views of non-managers as well. In addition, seeking only the opinions of
policy-makers did not t well with the objectives of the present study because one of
the aims was to investigate the impact of various HRM practices upon a wide cross-
section of employees. Consequently, a conscious attempt was made to include
employees from different age groups, educational backgrounds, locations and levels of
management within the organizations. A sample of eighty-one employees (thirty-one
managers and fty non-managers) was selected (with an average of fteen from each
organization) to prove demographic diversity. The selection of interviewees, based
upon the speci ed criteria, was made with the help of managers: the usefulness of a
diverse sample was outlined and they were requested to respect this in proposing their
sample, at times also being assisted by the author visiting the of ce. By providing these
multiple levels of analyses, the applicability of the ndings was broadened.
In the one- to two-hour-long interviews, employees were asked to share their
experiences with HRM in their own organizations. During the course of the
conversation, direct questions were also asked to investigate the impact of HRM on
their satisfaction or dissatisfaction with the HRM systems and their commitment to the
organization. However, please note that the data for employee turnover rate cited in this
paper were obtained from various HR departments. The interview transcripts were
analysed and coded to isolate key themes relevant to the interviewee’s experiences with
HRM and its impact upon them in order to answer the questions enumerated at the
beginning of this paper.
Understanding socio-cultural and contextual variables

In this section, a combined discussion of several key socio-cultural and economic
variables will follow to establish the environment in which this research was conducted.
It will also provide an enriched understanding of the in uences upon multinationals and
as such help pull out key themes in the convergence-divergence debate.
Socio-cultural variables
Pakistani culture has been characterized as an amalgam of religion, Indian origins,

British colonialism and American in uences (Khilji, 1999a, 1999b). The following
discussion will outline the impact of each of these upon organizations and the work-
related values of employees.
Islam was brought to the Indian sub-continent by Arabs in the seventh century, and
later strengthened by other settlers and traders from Turkey and Persia. Religion seems
to be prominent in Pakistan because its ideology of independence emerged from the
belief that the Muslims of the Indian sub-continent are a separate nation based on their
unique cultural heritage. Although 96 per cent of the population is of Muslim faith
(Government of Pakistan, 2000), since they have lived under the in uence of Indians
for centuries, many customs and traditions that form the structure of the society, such
as roles expected of women, the manner in which a child is raised, etc., can be traced
back to Indian origins. While Islam has caused change in certain perceptions, such as
evolved attitudes resulting in the elimination of the caste system, it has still failed to
affect many other aspects of daily life. Therefore, the two in uences together explain
the existing social set-up, which is family centred. Obligations to family include both
nancial and ritual practices. Family-like ties are also created with persons who are not
biological relatives but who are socially integrated into a group. Family and social
allegiances are abiding and generally take precedence over rules. Life is built within a
group (Lyon, 1993), there is a pattern of dependence which pervades all human contact
and people carry a strong need for security. The social system also requires
surrendering to authority; originality and independence in decision-making are met with
disapproval.
Core organizational characteristics Research in HRM has shown evidence that

early socialization is in uenced by various social institutions such as family and
education. Interactions with these institutions (and their representatives) form the basis
of many psychological characteristics impacting on the future personality. Hence, the
effect of social exposure determines the work-related values of employees and even the
fundamental corporate culture of an organization (Hofstede, 1980, 1991; Kanungo and
Jaeger, 1990; Tayeb, 1995; Mueller, 1994).
Having a family-oriented social set-up, organizational life is also community life.
Employees tend to form social circles within organizations (Khilji, 1999a). Meritocracy
does not prevail, as relationships take precedence over rules and can guide HRM
decisions such as hiring and promotions. Organizations have high power distance and
are typically authoritarian, meaning decision-making authority is located at the top
management level. There is limited employee autonomy; top to bottom communication
is minimal and bottom-up communication is unheard of. Employee involvement is a
foreign concept. Recently, evidence from Khilji’s (1999a) research suggests that, due to
a high unemployment rate and fewer job opportunities, the market has become quite
competitive. As a consequence, employee commitment and loyalty to their organiza-
tions has been eroded.
Core HRM characteristics The British, who established a colony on the sub-
continent for almost a century, have left signi cant marks on the legal systems and
management structures of the country. Many prevalent laws, such as labour laws, have
hardly changed since independence. The culture within PSEs is truly a replica of the
colonial era: bureaucratic, centralized and not responsive to needs of the public in
general.
In a typical Pakistani organization, rigid HRM practices are the norm. In large PSEs,
decisions are made by government-appointed committees (Klein, 1992). Managers are
often forced to hire staff, not necessarily on the basis of merit, but on the
recommendations of their committees or unions (Khilji, 1999b). Seniority-based
remuneration is practised. Scope for creative management is limited because of rigid
rules and regulations. Employees’ initiative is not encouraged due to low incentives.
Wages and salaries are not competitive with those of multinationals (Khilji, 2000b).
Despite increasing availability of training institutes dedicated to employee develop-
ment, many organizations fail to bene t from them because of a lack of planning. No
system of priorities driven by strategic considerations or career employees’ develop-
ment plans has been established. This lack of strategic emphasis on training needs has
led to continued acceptance of a questionable range of motivations in securing these
opportunities, particularly those involving overseas visits (Eldridge, 1992). As a result,
training has not created a real impact. Management has failed to develop or implement
systems that are fair, led by assessment of training needs and linked to career
development plans of individual employees (Qureshi, 1998).
Recent American in uences In recent years, especially since the deregulation of the
economy, American in uences have diluted the impact of this British inheritance and
have gained signi cance, both in educational institutions and in the workplace. Today,
af liates of American business schools are seen in every neighbourhood in major cities.
The best-respected business schools of the country are run like top-class North
American business schools (Khilji, 1999a, 2000b). Management faculties of govern-
ment universities also follow American syllabuses. Many training institutes (such as
PIM, the Pakistan Institute of Management) were established with aid from the Ford
Foundation and Harvard, in terms both of money and of content of their training
programs. Zakaria (1994) and Khilji (1995) have observed that Pakistani managers
want to follow the American model in managing organizations. American management
is considered to be progressive and results oriented, while British managers are labelled
as slow and bureaucratic, as are the Pakistani civil services, inherited from the
British.
The above discussion highlights two important issues about the people of Pakistan.
1) They are open to foreign in uences and changes; core cultural values have been an
amalgamation of many foreign ideas. 2) As such, organizations are caught in-between
the preservation of their core cultural values and the need to modernize in an era of
globalization. Hence socio-cultural variables that were initially considered to be strictly
a convergent force now have both convergence and divergence issues interfacing. This
supports the argument put forth by McGaughey and De Cieri (1999) that none of the
sets of variables studied in international management is unchanging by nature.
Contextual and economic variables
Some economic realities The total labour force in Pakistan is estimated at 38.18
million, of which about 2.05 million are unemployed, giving an unemployment rate of
5.37 per cent (Government of Pakistan, 1999). If the underemployed population were
included, this rate would probably triple. The budget allocated to education does not
surpass 2.5 per cent of the GNP. The current budget (1999–2000) allocated Rs 142
billion for defence purposes and Rs 116.3 billion to developing the country and its 140
million people. Pakistan has lost substantial income gains due to its low investment in
education, and this has contributed to the country’s lack of competitiveness in
international markets (Amjad, 1992; Birdsall and Ross, 1993; Economist, 1994: 106; de
Haen, 1993; Khan and Marvi, 1993). However, this does not imply that Pakistan has a
shortage of educated labour. The reality is that the amounts spent on education have
been disproportionately allocated, i.e., colleges and universities in urban areas have
been expanded at the expense of provisions for elementary education in rural areas
(Korson, 1993). This, together with a high population growth rate and the inability of
the economy to provide job opportunities for both its educated and uneducated labour
force, has created a paradoxical situation: an abundance of unemployed graduates and
an increase of a million illiterate workers each year. Although more money has been
diverted to tertiary education, it is still insuf cient to meet the needs of a population that
is growing very fast and is geographically dispersed (Ahmad, 1997).
The business environment Economic policies found in Pakistan can be termed as

liberal; they have sought to make maximum use of market mechanisms. Where
possible, direct control has been avoided. Public investment has been used to
supplement rather than to displace private investment. The only exception was the
1971–7 period of nationalization, which created a setback to the growth of the
economy. The country that had developed a sound industrial base during the 1960s
suddenly went into a slump. The problems were compounded by the low level of output
due to bureaucratic management and poor HRM practices (Mirza, 1995). Consequently,
in 1990, a government privatization programme began, which included denationalizing
PSEs and opening up the private sector to investors. This programme was deemed a
success as investors’ interest was sparked and many new enterprises, especially in the
banking sector, were begun. At the same time multinationals that had long been
operating with a low pro le started reinvesting in the market through expansion of
services or diversi cation of products. The government also took initiatives to foster a
business-driven culture and to encourage the use of professional and modern
management practices. This created a healthy, pro table and competitive business
environment, making the private sector more progressive than the public sector (Khilji,
1999a, 2001). In a recent survey, The Economist reported, ‘There are remarkable
examples of the private sector taking over the duties of a corroded state and performing
them well’ (Unger, 1999).
Khilji (1999a) explains: ‘Pakistani organizations and their culture are undergoing a
dramatic change. A deregulation of the economy has added impetus; private local
organizations are being set up and multinationals are expanding. It has indeed added a
fresh perspective to HRM systems.’
Multinationals as role models Due to constrained training facilities and limited job
opportunities, as explained above, Pakistan, like other developing countries, has been
encouraging the growth of international corporations in order to bene t from their
technical and management know-how (Pakistan and Gulf Economist, 1995). Multi-
nationals are seen as tools for providing employment, bringing in new technology and
work practices from their parent companies, as well as providing training grounds for
the local workforce. Khilji’s research (2000b) reveals that multinationals are expected
to set trends. Con dence in local organizations is notoriously low; for example, the ex-
Prime Minister appointed a Citibank-trained Pakistani and his team, all of whom have
vast experience with multinational banks, to rescue the biggest nationalized bank from
a crisis and to modify its management culture. In an environment with low creativity
and innovation, multinationals are expected to act as ‘agents of change’. In addition,
disappointment with the existing traditional HRM practices of the public sector
increases openness to in uences of modern HRM techniques. In sum, multinationals are
not really expected to adopt local practices. It follows that subsidiaries of multinationals
operating in Pakistan are free to assimilate foreign HRM practices.
Organizational variables
As the current study is designed to be a multi-variable analysis, it will go beyond
conclusions drawn by the examination of socio-cultural and contextual variables, both

of which reveal a changed business environment calling for convergence of HRM. In
this section, a careful analysis of organizational variables, including the in uences of
parent companies over the sample organizations and the roles of HRM managers, will
be made in order to discern their roles in the process of HRM.
Control
Within multinationals, benchmarking and transfer of best practices from the parent
company are important processes that deliver information to the subsidiaries (Mueller,
1994). Through the use of power, authority and a wide range of bureaucratic, cultural
and informal mechanisms, the behaviour and output of subsidiaries is in uenced, albeit
to varying degrees (Geringer and Herbert, 1989). Thus a critical determinant of HRM
in sample organizations appears to be the control exercised by the parent company. As
the focus of the present study is the process of HRM change, an analysis of the degree
of control exercised in terms of reporting relationships, use of expatriates and the
involvement of the parent company in HR policy making will be made to capture the
essence of speci c organizational in uences.
The role of parent companies in HR policy making Despite the different nation-
alities of parent companies (see Table 1), the degree of regional head of ce (RHO)
control was found to be similar across the sample organizations. Each organization
reports to an RHO and falls under the jurisdiction of regional corporate strategies.
Although reporting lines and policy approval structures for the subsidiaries are strictly
de ned and global policy manuals are handed down, there is an adaptation to local
norms when it comes to actual practices (such as taking account of people’s work-
related values or observing competitors closely). As a result, HRM is not universal
across respective groups. Here, a distinction between policy and practice is made, as has
been suggested by some researchers (Schuler and Dowling, 1993; Tayeb, 1998). A
policy is a guideline for DM (Decision Making) and action. Practice is the actual action
taken, or, in other words, refers to how a policy is implemented. While some policies,
such as those involving employees in improving their work environment (for instance,
those initiated at sample bank F2; see Table 1), may be the same group-wise (because
they originate from the RHO or HQ), the actual practice in sample subsidiaries responds
to local norms by adopting a consultative approach. Although employees are
encouraged to contribute ideas, they are not given the autonomy to make decisions. The
practices in Pakistan still remain centralized and the nal decision-making authority still
lies with top management, as is supported by the local culture.
The policy-approval structure in each bank is strictly de ned and requires every new
policy developed in Pakistan to be passed on to the RHO for approval. This process
does not take place in isolation; continual feedback from competitors (mainly other
multinationals) and RHO is received. Local organizations are ignored due to their poor
HR practices. The HR manager at F2 elaborated the dual task of HR policy making
as:
There are two things to be seen:

a) Keep concepts as close and common as possible to other sister subsidiaries.
b) See what local practices are, to keep in line with competitors.
F1 is an exception in this regard, in that the HR manager makes policies independently.

He is far ahead of local competitors and sister subsidiaries in the region as far as the
adoption of HR practices is concerned. Nevertheless, as will be shown later, he, too, is
in uenced by the local laws and culture.
The use of expatriates The prominence of expatriates in any subsidiary is often

measured either in terms of their number compared to local nationals or in terms of the
in uence of the positions they hold in a subsidiary (Rosenzweig and Nohria, 1994). In
the sample, the number of expatriates is minimal. F2 and F3 have two and one
expatriates, respectively, in senior managerial positions, whereas the other sample
organizations have none. All country CEOs and HR managers are native Pakistanis
(refer to Table 1), due to a high unemployment rate and the under-developed structure
of local industries. As explained above, multinationals are considered as training
grounds for the local workforce. Hence, government discourages recruitment or
placement of expatriates in local subsidiaries. Tayeb (1999) has also argued that the
number of expatriates employed is largely dependent upon the nature of the available
workforce. If the workforce is educated and quali ed, as is in Pakistan, then the parent
companies are willing to ll most positions locally.
The process of HRM change
Despite glaring similarities in the policy-approval structures of sample banks and a

changed business environment, the process of HRM change is taking place only in F1,
F3 and F5. In these organizations, HR managers are currently involved in bringing
HRM to the level of other business functions and changing long-held traditional views
about little or no involvement of HR departments in conducting business. They have
introduced practices like MBO (Management by Objective), open performance
appraisals and needs-led training programmes. F2 and F4 have not yet applied
integrated and consistent new HRM practices. Their HR departments are involved only
in administrative tasks such as arranging for training (without considering it a function
that responds to organizational and individual employee needs), salary disbursal and tax
deductions.
Marked differences in the way new HRM practices are being introduced at each of
these banks are visible. An analysis highlights three key factors explaining these
differences: 1) the role of the RHO; 2) the commitment and involvement of senior
managers; and 3) the personality of the HR managers. Below is a discussion of each of
these factors.
The role of the RHO In F5 and F3, the change was initiated by the RHO upon whom,
in fact, it was dependent. Employees remarked that the involvement of the RHO
(impacting on the HR department) started to increase with a more frequent ow of
information in the form of brochures explaining what the changes might entail. A
presentation was given by the regional head of human resources for local employees
within Pakistan. A new HR country CEO was appointed. The HR department was
restructured, given more authority, and newer functions, such as training and
development, had been added and training manuals had been distributed.
On the contrary, F1 is a pioneer in the eld among group subsidiaries in the region.
Primarily, new HR systems were originated locally by the HR manager himself (for
example, the annual appraisal forms and system, and training needs analysis). Initially,
some feedback from other subsidiaries on their policies was received during the
formulation process. This was then analysed in terms of strategy in Pakistan and the
needs of Pakistani employees. The HR manager speci ed that help from the RHO is
sought only when deemed necessary. This depicts a ‘support’ relationship with the
RHO rather than a ‘dependent’ relationship, as has been revealed by F3 and F5. At the
same time, policies pursued by F1 Pakistan have been appreciated by the RHO and are
being adopted by many sister subsidiaries.
Commitment and involvement of senior managers Fundamentally, top managers

played a key role in bringing about a change of the HRM image in their organizations.
At F5, the new country chief executive (Pakistan) and the new regional head of HR
initiated this change. At F1, after deregulation of the economy, when the new country
CEO reoriented the organization, resulting in it becoming a market leader, a need was
felt to set up an HR department that was also at the forefront. In the words of an HR
manager, who was appointed for this speci c job:
Given the needs of employees and the kinds of career paths they were aiming at, there
was a desperate call for putting HR systems in place. The country manager was most
keen and pushed ahead to establishing a professional HR department. We have the best
people and our job is to retain them and develop them.
In F3, changes eventually began to occur after the appointment of the rst professional
HR person in the RHO who introduced many new concepts to other subsidiaries by
training HR managers at the RHO.
The personality of the HR manager The idea to bring about change may have been
initiated by senior managers, but implementing these changes was not easy. Line
managers may show resistance because the new role of the HR department affects their
authority by empowering the HR function and designating to it a status equal to their
own functions. Each manager, however, depending upon his or her personality, has
dealt with the situation in a different manner. This has had a direct impact upon the
speed with which HR policies are implemented as well as the attitudes of
employees.
The F1 manager remained adamant and found he had to persist in arguing his points.
He disclosed: ‘In my rst two to three months, there were a number of arguments and
rows with other line managers. They wanted to continue things the way they were and
I was not willing to do that. I said to them if you want to go back to that stage, get rid
of me rst.’ Gradually he built a culture of ‘openness to change’. Formulation of each
new policy begins with presenting ideas to the employees and inviting their feedback.
Employees are encouraged to make suggestions directed towards areas that need
immediate attention. Therefore, employees tend to be positive about the new HR role.
They termed HRM in their organization as forward looking, professional and proactive.
On the other hand, the HR managers in F3 and F5 have been receiving new policy
guidelines from the RHO. Their job is to ensure the new policies comply with local
norms before implementation. In this sense, they have assumed the roles of ‘followers’
and act as implementers only after some adaptation. At F5, the regional HR head and
the country CEO are involved in each change, give useful advice and are so supportive
that the HR manager has little dif culty making changes and nds he does not need to
argue with line managers. At F3, however, the HR manager is solely responsible for
bringing these changes in her subsidiary. No senior manager, from either the RHO
or her own subsidiary, is involved in or committed to the process. Talking of her
experience, she said:
To project HR people as business partners has been especially hard for me. Even today,
I have support only from top two members of the management committee. They are the
ones to push things forward. The rest of the lot thinks you are trying to interfere with the
way they are doing things.
This may be the reason that most employees at F3 seemed disillusioned with the role of
the HR department; they desired a proactive set of HRM practices. However, at F5, due
to the commitment of senior managers and the RHO to the process of HRM, some
employees used terms like counsellors and mentors to describe the role of their HR
department. Others were sceptical and wanted to see the results before voicing their
opinions.
Implementation: preserving core characteristics or adopting alternatives? While

new policies at all organizations incorporated similar concepts of employee empower-
ment and employee involvement, the outcome was not the same. A gap between policy
and implementation (or practice, as has been de ned previously) was observed,
especially in F3 and F5. Although policies were formulated in the HR departments, the
implementation was dependent upon line managers. Used to being in a high power
distance culture, some of them are referred to as ‘old dinosaurs’. For example,
feedback-oriented performance appraisals that called for greater employee involvement
were introduced at F3. According to the policy, line managers are required to hold
individual meetings with their employees during which they are asked mutually to
discuss strengths and weaknesses. It is clear that employees are given the freedom to
express themselves and input feedback. In the case that they disagree with their
managers, an impartial arbitrator is to be appointed by the HR department to make nal
recommendations. However, in practice, some line managers do not follow the
guidelines but conduct individual meetings solely for the purpose of communicating
their own decisions to the employees and, when an employee does not agree, he is
ignored. Eventually, this leaves the employee frustrated and angry. Despite differences
of opinion with their managers, most employees sign off their appraisals, either not
knowing they had the right to disagree or not sure if it would do any good. One
employee remarked,
I know many of my colleagues who have signed off their appraisals without necessarily
agreeing with their managers. The reason is that we really don’t think a confrontation
would bring any good. After all it is the same manager we are going to be working with;
so why make things even more dif cult by defying him?
The problem is that these organizations have preserved core cultural characteristics by
retaining a formal and hierarchical structure. Consequently, HRM is centralized.
Policies are formulated at head of ces in isolation and then cascaded down to each
of ce or division trying to attain a uniformity of objectives and culture. Employees
cannot approach their HR departments directly. Going though the proper channels is
almost always stressed. Employees are given little autonomy and they are not
encouraged to provide feedback in the process of policy formulation or implementation.
As mentioned previously, the social set-up requires surrendering to authority; hence,
employees generally accept authority unquestioningly.
A similar situation is exhibited in F2 and F4 where traditional HRM is practised.
Employee satisfaction with HRM and organizational commitment in these organizations
(as has been described during interviews) is low; turnover is high.
This is in direct contrast with F1 where employee satisfaction is high and turnover is
the lowest in the industry. F1 is called the ‘employer of choice’ and is known for being
able to retain its employees. What differentiates F1 from the others is that it has
changed its culture gradually to match its policies. The core organizational character-
istics of little autonomy, limited communication and high power distance have been
eliminated. All employees are fully involved in policy formulation. Any time there is a
change of policy or a new policy to be introduced, there are initial presentations to large
groups of employees (from all levels) in order to evaluate their responses and to collect
their feedback, which in turn makes an impact on the nal policy. Each employee is
given on-line access to manuals to ensure policies are crystal clear to them. Managers
are trained to ensure policy guidelines are followed in a uniform manner. Employees
are encouraged to approach the HR department directly in the case of a problem, such
that any deviation from policy is brought to the notice of the HR department. This
organization has succeeded in building a culture that truly involves employees.
Managers do not feel threatened by sharing their power because senior management has
taken great pains to ensure they understand and adopt the positive elements of this kind
of a culture.
Analysis
The above discussion has shown that, at times, both divergent and convergent in uences
may occur simultaneously within one variable. For example, although culture may be
treated as one variable, it has three main constituents in the Pakistani context, each one
of which exerts a different in uence (see Table 2). The cultural antecedents of the
people, as has been explained previously, point towards accepting foreign ideas, and
thus facilitate convergence to modern HRM concepts. Similarly, American management
education acts as a convergent in uence by exposing employees and students (thus
future generations of employees and managers) to modern HRM approaches. On the
other hand, a traditional social upbringing, characterized by dependence, little
autonomy, dominance of social circles, and the colonial bureaucratic culture of
traditional organizations tend to exert divergent in uences. As a result, although some
organizations have formulated progressive policies, implementation is low because
managers brought up and trained in a hierarchical and centralized set-up resist sharing
power and involving employees in decision making.
A related factor is the small number of expatriates in the sample organizations. Local
employees occupy the key managerial positions, country CEOs and HR managers (see
Table 1). As a consequence, work-related attitudes associated with local employees
in uence management practices, hence acting as a divergent in uence. As was
Table 2 Explanation of the effects of socio-cultural, contextual and organizational
variables
Variables Convergence Divergence
Culture
Indian origins – YES
Work-related values – YES
American in uences YES –
British inheritance – YES
Contextual
Business environment YES –
Role expected of multinationals (due
to underdeveloped HRM systems) – YES
High unemploymen t – YES
Quali ed workforce – YES
Organizational
Role of RHO in policy-makin g YES Allowing for some
divergence
Use of expats (low due to economic – YES
conditions – a high unemployment
and quali ed workforce)
Role of RHO in the process of HRM YES – in F3 and F5 Allowing for some
change divergence in F3 and
F5 (localization )
Maintenance in F1, F2
and F4
Involvement of senior management in YES – in F1, F3 and Allowing for some
the process of HRM change F5 divergence in F3 and
F5
Personality of HR managers YES – F1 YES (in F2, F3, F4
and F5)
explained previously, this is, in fact, attributable to a high unemployment rate and the
easy availability of a quali ed workforce, factors included in contextual variables which
were at the outset considered to be convergent in uences. This illustrates the need for
a thorough understanding of each variable and factor in the study of international
management before labelling them one or the other.
The above discussion has highlighted the interplay of socio-cultural, contextual and
organizational factors that together explain the process of HRM change. However, this
study shows that a changed business environment, with deregulation and direct foreign
investment, launched this process. This supports the convergence view that proposes
that, as economies around the world get deregulated, more and more companies will
begin converging towards similar sets of practices (Kirkman and Shapiro, 1999;
Mueller, 1994; Mueller, 1998; Negandhi, 1987; Woods, 1998). This is of particular
relevance to countries like Pakistan where faith in local management practices is low
and there is, to some degree, an absence of exemplary approaches to HRM. As a
consequence, multinationals are expected to transfer best practices from their respective
parent companies into Pakistan, thus paving way for convergence. However, the process
is not as simple as it may seem. First, RHOs exercise loose control over these
subsidiaries and offer them autonomy in decision-making, leaving them the freedom to
diverge, either by maintaining local practices or by adapting RHO guidelines to local
norms. Most multinationals seem to be following this latter pattern. At the same time,
the involvement of regional HR departments in policy-making and in the introduction
of new ideas is organization dependent; i.e., it is more evident in some organizations
than in others. Where involvement is stronger, convergence (with some adaptation) is
prominent. In the case of little involvement or interest in the subsidiary’s operations
(such as in F2 and F4), maintenance has been observed. Second, core local cultural
characteristics such as little autonomy, hierarchy and large power distance also tend to
have a divergent impact by hindering successful implementation of many of the new
HRM policies. Organizations, therefore, are simultaneously exposed to forces of both
convergence and divergence.
The resultant outcome is in uenced by other factors, such as organizational strategy,
personality of managers and involvement of senior managers in the process of HRM
change. For example, RHO managers have initiated the changes at F3 and F5. The
Pakistani HR managers were carefully selected or trained speci cally for this purpose.
As RHOs themselves are undergoing an HRM transformation, it is intended to impact

similarly on the subsidiary level as well. On the other hand, F1 initiated its change as
a response to expanded operations and an organizational strategy of ‘leading the
market’. Despite the negligible role of RHO in the entire process, F1 has the most
advanced and well-integrated policies, which have been successfully implemented
throughout the organization. This is due to the HR manager’s commitment to the
change and the clarity of his goals, which he has communicated effectively throughout
the organization. These practices are neither directly descended from the RHO nor do
they represent the core characteristics associated with Pakistani organizations. Despite
that, following the explanation of convergence and divergence made at the beginning of
this paper, the process will be referred to as convergence. It is because concepts that
have been introduced, such as strategic integration, MBO, open feedback appraisals,
needs-led training and development, are not novel. They have been examined for over
a decade in the West and have been tried out by many organizations. There is evidence
of the in ltration of thoughts from one culture to another and homogeneity in practices
that further the convergence thesis so that managers around the world embrace common
attitudes and behaviours. As F1 has been rst among its subsidiaries to develop new
HRM policies and implement them with success, it also illustrates the fact that the
transfer of best practices does not only have to take place from the parent company to
the subsidiary, but it can also work in the other direction, from the subsidiary to the
parent company. Due to the total commitment of the HR manager and his understanding
of business strategies, the core organizational culture has also been revamped, thus
minimizing the effects of divergence. However, both F3 and F5, where new HRM
policies were also introduced, did not make adjustments to the traditional aspects of the
organizational culture. As a consequence, they must continually deal with divergent
forces while trying to converge. The status of F2 and F4, similarly, is due to inertia on
the part of either the RHO or local HR managers, or both.
Which mode of convergence–divergence?
In the case of F3 and F5, as has been described above, contributions from the RHO
were made and then blended in with the local norms, such that core local characteristics
(of hierarchy, bureaucracy, minimal communication and minimal autonomy) were
maintained. This is called ‘integration’ (see Table 3), as has been explained in the
research model (Figure 1). F1, on other hand, is an example of ‘assimilation’ where
local norms are ignored. The culture of ‘involvement’, ‘empowerment’ and ‘autonomy’
248
Table 3 Organizational response to various variables
Business environment Organizational variables Implementation of new practices

Response Control Direct Personality of Process Divergence/
involvement of managers Convergence
RHO in HRM
change
F1 Changed business strategy Support NO Leader Innovator Change. Convergence –

Not preserving core cultural Assimilation
characteristics. Becoming
communicative, educating employees
and line managers, seeking feedback,
employee involvement.
ASSIMILATION
F2 No response Dependent NO Follower No change. Maintenance
Preserving core characteristics and
avoiding adoption of any alternatives.
SEPARATION
F3 Changed business strategy Dependent YES Follower Change. Both:
Maintaining core characteristics. Global divergence and
policies amended to local norms. convergence.
INTEGRATION Integration
F4 No response Dependent NO Follower No change. Maintenance
The International Journal of Human Resource Management
Preserving core characteristics and

avoiding adoption of any alternatives.
SEPARATION
F5 Changed business strategy Dependent YES Follower Change. Both:
Preserving core characteristics. Global divergence and
policies amended to local norms. convergence.
INTEGRATION Integration
is new to Pakistani organizations. F1 has shown consistency by educating its employees
and ingraining new values in a way that employees have appreciated. A low turnover
rate and a high satisfaction with HR is evidence of the acceptance of the new culture.
The other two organizations, F2 and F4, can be classi ed as being in a ‘separation’
mode (see Table 3) since neither have they let go of their core characteristics nor have
they found alternative practices that have been adopted by their competitors attractive,
despite the changed economic and business environment. This illustrates the fact that,
while the economic environment has the same impact, organizations respond differ-
ently. According to an old adage, ‘Experience is not what happens to you, but it is what
you do with what happens to you’. The same could be said of organizations. It is not
what the ‘business/economic change’ may imply, but ‘how’ that speci c change is
interpreted and the response it brings. Obviously, organizations that wish to remain at
the forefront of the competition treat the changes as an advantage, just as F1 has
done.
Finally, employees’ perceptions of what constitute good HRM practices are quite
similar to those alternatives espoused and implemented in the West. In organizations
where new HRM practices are not yet adopted or have not been implemented
effectively, employees are dissatis ed. They have outlined the need to develop
participatory management and to develop a proactive role for HRM. In these
organizations, turnover is high and organizational commitment is low. By contrast, in
F1, where new HRM has been implemented effectively after rebuilding a culture that
supports the changes, employees are satis ed. Khilji (1999a), in her study of Pakistani
employees, has also concluded that employees are ready to depart from traditional
organizational cultures and practices, despite the fact that not all organizations are.
Organizations that have done so are reaping the bene ts in terms of a higher satisfaction
and lower turnover. This shows that globalization in its broadest sense has not only
been effective in transferring practices but also in diffusing ideas and philosophies, thus
supporting the convergence view.
Limitations
This study has a number of limitations. First, it is cross-sectional in analysis. As a

result, it presents evidence from only one speci c period of time. Changes at all of these
organizations are taking place and continue to take place. Following these organizations
over a period of time to observe whether F3 and F5 adopt a more open and
communicative approach towards the process of HRM change would add more value to
the research. In addition, it would have been interesting to study the impact of HRM
change over a period of time to see if and how best practices get ltered into other
multinational and domestic organizations. Second, it is a study of only one country and
should be expanded to multiple environments of similar and dissimilar natures to better
understand the impact of varying business environments. Third, it investigates only one
industry, that of banking, in its research and analysis. As a result, its ndings (of
organizational variables) may be criticized for a lack of wide empirical application,
although it is argued that an analysis of socio-cultural and contextual variables, or of
speci ed core characteristics, is widely applicable because it has been drawn from a
countrywide analysis. However, since the ndings of the study reveal that organiza-
tional variables lend a certain unique quality to each organization, making general-
izations that extend outside the sample, even in the same industry, is questionable.
Despite that, arguments and evidence of the present study can serve in a way that
previous ones have failed: as an in-depth description as well as a rich reference point for
future comparisons and contrasts.
Conclusions
This paper has highlighted several of issues, and more signi cantly the need to make an
integrated analysis for a comprehensive understanding of international human resource
management practices. It has shown evidence to illustrate that both divergent and
convergent issues act simultaneously, and hence are often complementary in the
understanding of international business practices. Research focus needs to be shifted to
incorporate organizational and contextual variables with socio-cultural variables in
order to have a full understanding of how the general processes play out in
multinationals. It also shows that the transfer of best practices is not always from the
parent company to the subsidiary, as is often assumed, especially when referring to
subsidiaries in developing countries, but can also be in the other direction, as has been
exhibited by F1.
The study raises an important question: which is the best choice for developing
countries like Pakistan? Is it ‘integration’, ‘assimilation’ or ‘maintenance’? Using the
employees’ response as a measure, as has been mentioned above, their satisfaction is
highest and turnover is lowest in F1, the ‘assimilation’ mode. Traditional Pakistani
organizations have been criticized for their passivity, bureaucratic and hierarchical
cultures, which are manifestations of a national culture and social set-up: a divergent
factor. However, the success of F1 clearly points out the need to move away from
traditional structures and towards the adoption of a new organizational culture that is
communicative and offers autonomy to its employees. This means that Pakistani
employees are ready for a change and calls for managers in Pakistan (and in other
developing countries) to reassess the needs of their employees and opt for novel
approaches to human resource management.
Acknowledgements
The author is grateful to Rabinder Kanungo and anonymous reviewers for their helpful
comments.
Note
1 New HRM practices espouse employee involvement, developing a communicative culture,
aligning the business strategy with the HRM and incorporating practices like needs-led training
and performance-led rewards and remuneration (Legge, 1989; Storey, 1992).
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This article was downloaded by: [Northwestern University]

On: 06 January 2015, At: 12:23

The International Journal

Modes of convergence and

To cite this article: E. Khilji (2002) Modes of convergence and divergence:

To link to this article: http://dx.doi.org/10.1080/09585190110102350

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of

Modes of convergence and divergence: an

Keywords Convergence; divergence; human resource management; international man-

Shaista Khilji, Faculty of Management, Samuel Broneman Building, McGill University,

The International Journal of Human Resource Management

of core characteristics within multinationals (Baldacchino, 1997; Bartlett and Ghoshal,

determined by the impact it has on employee outcomes. It is, therefore, important to

Research model: modes of convergence–divergence

As elaborated above, organizations are exposed to a host of in uences at the

Preservation of core characteristics

YES Integration Assimilation

Figure 1 Modes of convergence and divergence

Bank Origin of No. of Nationality of Degree of control exercised by No. of

F1 W. Europe 0 Pakistani Broad rules with localizatio n 237

competitive environment, there is also evidence to suggest that transformations in HRM

Understanding socio-cultural and contextual variables

Pakistani culture has been characterized as an amalgam of religion, Indian origins,

Core organizational characteristics Research in HRM has shown evidence that

Contextual and economic variables

The business environment Economic policies found in Pakistan can be termed as

conclusions drawn by the examination of socio-cultural and contextual variables, both

There are two things to be seen:

F1 is an exception in this regard, in that the HR manager makes policies independently.

The use of expatriates The prominence of expatriates in any subsidiary is often

The process of HRM change

Despite glaring similarities in the policy-approval structures of sample banks and a

Commitment and involvement of senior managers Fundamentally, top managers

Implementation: preserving core characteristics or adopting alternatives? While

As RHOs themselves are undergoing an HRM transformation, it is intended to impact

Which mode of convergence–divergence?

Table 3 Organizational response to various variables

Business environment Organizational variables Implementation of new practices

F1 Changed business strategy Support NO Leader Innovator Change. Convergence –

Preserving core characteristics and

This study has a number of limitations. First, it is cross-sectional in analysis. As a

Giddens, A. (1990) The Consequences of Modernity. London: Polity Press.

Studies, 15(3): 407–28.

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As elaborated above, organizations are exposed to a host of in uences at the