Assignment

Managing HR in an international context demands a high level of

cross cultural sensitivity.

Module
Cross Cultural Human Resource Management

PRESENTED TO:
Siobhan Alderson
Val Finnigan
Crystal Zhang
PRESENTED BY:
Ali Salah Mohamed
Student ID:c7084377
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Date: 08-11-10
Index

Introduction 3
Human resource management (HRM) 3
Globalization 3
Cross cultural Sensitivity 4
Cross Cultural Differences 4
Cross Cultural sensitivity Solution for International Organizations. 5
Cross Cultural Team Building 5
Cross Cultural Synergy 5
Cross cultural training and learning 5
Conclusion 6
References 7
Managing HR in an international context demands a high level of cross cultural
sensitivity.

Introduction
This report is written to the critically evaluate the statement "Managing HR in an
international context demands a high level of cross cultural sensitivity".

The objectives of this report are to critically evaluate the complexity of the
management of people in the international context and to be able to apply Human
Resource Management HRM techniques with sensitivity to national cultural
differences. While evaluating an understanding of the principle areas of HRM activity
in international context, this report seeks to identify and undertake key Human
Resource HR issues the high level of cross cultural sensitivity facing Multi-National
Companies. We will try to understand the cross cultural differences and find solution
to this sensitivity in international context.

Human resource management (HRM)

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization’s most valued assets covers all the concepts,
strategies, policies and practices which organisations use to manage and develop the
people working there who individually and collectively contribute to the achievement
of the objectives of the organization(Plessis and Huntley 2009). HR Is a description of
the processes involved in managing people in organizations. In simple words, HRM
means recruiting people, developing their capacities, utilizing their skills, maintaining
and managing their services in tune with the job and organizational requirement
(Plessis and Huntley 2009).
Globalisation is changing the world’s economic landscape BERR (2008), the
expansion of international trade, technological advances and the increase in the
number of companies dealing on the international stage have brought about a dramatic
change in the frequency, context and means by which people from different cultural
backgrounds interact Elashmawi ( 1998).
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An international human resource management IHRM system is a set of different

activities, functions and a series of action that are organized at encouraging, training,
developing and maintaining the human resources of a multinational organization
(Plessis and Huntley 2009).

Globalization
Globalization is an important aspect within the modern economic environment.
Economies regardless of their scale are achieving financial development and stability
IMF (2008). Economics development can be achieved by many ways by working on
different dimension of economy. Every country’s economics solution to the problem
will be different from other, but the objective of all countries and economies is to
achieve economic prosperity IMF Staff Report (2008).

There is no universally agreed definition of globalization; it is the process of

increasing the connectivity and interdependence of the world’s markets and
businesses WTO Report (2008). This process has speeded up considerably in the last
two decades as technological advances make it easier for people to travel,
communicate, and do business internationally.

Human societies across the world have established progressively closer contacts over
many centuries, but recently the pace has dramatically increased. Jet airplanes, cheap
telephone service, email, computers, huge ocean-going ships, instant capital flows, all
these have made the world more interdependent than ever.
Multinational companies manufacture products in many poor countries and sell to
consumers around the world especially in those countries where buyer powers is very
strong. Capital, technology, people and raw materials move ever more quickly across
national and international borders. Along with products and finances, ideas and
cultures circulate more freely. As a result, laws, economies, and social movements are
forming at the international level. This means that an international human resource
management IHRM system should use the correct approach for recruitment by
ensuring that every one in the organization with different cultural backgrounds work
and fit together (Plessis and Huntley 2009).
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Cross cultural Sensitivity

International human resource management IHRM covers a wide range of business
critical areas that need cross cultural analysis. International HR is a major factor that
causes success in international business (Forster 2000).

An organizations’ HR department who is culturally sensitive should be aware that

there could be differences between their culture and another nations’ culture, and that
these differences could affect their business activity (Hutchings 2002). Managing HR
in international context demands a high level of culturally sensitivity. IHRM would
understand other countries’ traditions and ways of life, or attempt to learn and apply
new understandings. Importantly, culturally sensitive organizations need to be free
from prejudices and preconceptions about other countries, cultures and staff.

IHRM need maximising the cross-cultural performance of expatriates in international

postings and must be an integral element of the strategic human resource management
planning of organisations. The pace of globalisation make necessary that an
increasing number of organisations must think globally and ensures that their
expatriates are prepared and supported to do the same (Hutchings 2002).

IHRM may offer advice on a number of areas including recruitment, relocation,

international assignments, staff retention and training programmes.

Cross Cultural Differences

Culture is a set of shared attitudes, values, goals, and practices that characterizes an
institution or organization (Asgary and Walleor 2002) or a complex socially
constructed system which includes knowledge, belief, art, morals, law, custom and
any other capabilities and habits acquired by human as a member of society (Banerjee
2008).

According to (Banerjee 2008) in multinational organizations different cultures and

cultural backgrounds between a highly diverse staff base sometimes hinders or
prevents progress and brings challenges and difficulties. In international context
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culture differences do not necessarily mean only differences between Western

countries’ and Eastern countries’ cultures, but it includes differences in general areas
such as in behaviour, custom, norms, values, expressions, group mechanics and verbal
communication. These cross cultural differences then follow on through to high level
areas such as management styles, corporate culture, marketing and HR.

Cross Cultural sensitivity Solution for International Organizations.

Cross cultural sensitivity is becoming challenge for multinational organizations

(Tjosvold and Leung 2003). International companies from all over the world creating
joint ventures, acquisitions and alliances to compete in world market. In order to have
a well functioning business unit within an organization, cross cultural interaction is
critical. In order to

Cross Cultural Team Building

Cross cultural workshops and tanning will provide tools and methods to IHR
managers to support the process of staff integration, regardless of race, ethnicity,
religion, gender, or social class and will reduce cross cultural disagreement or clash
between ideas and build team spirit (Cooper et al 2005). This is essentially done
through highlighting cultural differences and building on strengths to ensure that
cultural sensitivity is used positively (Payene 2010), (Cooper et al 2005).

Cross Cultural Synergy

A study of (Payene 2010) reports that international mergers, acquisitions and joint-
ventures require their organizational members are involved in cross-cultural
interactions, people from different cultural backgrounds require to harmonise in order
to succeed. This can be achieved by cross cultural counselling and taking account of
communication styles, norms, values of organizational members.

Cross cultural training and learning

Multinational organizations are required to provide cross-cultural training prior to any
move. International assignments are long term processes and not one-off events. Thus,
it makes absolute sense to run an extensive cross-cultural training process and build
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on the learning curve initiated prior to the move and continue with either experimental
or formal cross-cultural learning between repatriated staff, senior expatriated staff and
new expatriates (Hutchings 2002).

Conclusion
The objectives of this report are to critically evaluate the complexity of the
management of people in the international context and to be able to apply Human
Resource Management HRM techniques with sensitivity to national cultural
differences.

In the future, the growth of global competition among business organizations will
demand the continuing development of cross cultural training and briefings for
employees. IHR managers are required to work with colleagues, customers or clients
from different cultural backgrounds to understand and use cultural sensitivity in
positive way.
In this research work we have analysed the IHRM practices norms and values in
context of cross cultural sensitivity. Researchers have focused on cross cultural team
building, cross cultural workshops and tanning, cross culture synergy where it is
necessary for multinational organizations to provide cross-cultural training prior to
any move.
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References:

Asgary N and Walleor H Alf (2002), The Cultural Impact of Globalisation:

Economic Activity and Social Change, Cross Cultural Management, Vol 9

Banerjee S (2008), Dimensions of Indian culture, core cultural values and marketing
implications An analysis, Cross Cultural Management: An International Journal Vol.
15 No. 4, 2008 pp. 367-378.
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BERR (2008), Globalization and the Changing UK Economy, [Available from]

<http://www.bis.gov.uk/files/file44332.pdf> Accessed on 05-11-10

Cooper D, Doucet L, and Pratt M (2005), Understanding "Appropriateness" in

Multinational Corporations, Available,
http://www.business.uiuc.edu/Working_Papers/papers/05−0122.pdf,
Accessed 05-11-10

Elashmawi F (1998), European Business Review, Volume 98 · Number 4 · 1998 · pp.

211–216

Forster N (2000), Expatriates and the impact of cross-cultural training, Human

Resource Management Journal, VOL 10 NO 3

Hutchings K (2002), Improving Selection Processes But Providing Marginal Support:

A Review of Cross-Cultural Difficulties for Expatriates
in Australian Organisations in China, Cross Cultural Management, Volume 9

IMF staff (2008), Globalization: A Brief Overview, [Available From],

http://www.imf.org/external/np/exr/ib/2008/053008.htm, Accessed, 05-11-10

Plessis J du A and K. Huntley (2009), Challenges in A Globalised Context For

International Human Resource Managers in South African Organisations,
International Review of Business Research Papers Vol.5 No. 1 January 2009 Pp. 413-
427

Payene N (2010), Cross Cultural Solutions for International Business, [Available

From], <http://www.kwintessential.co.uk/cultural-services/articles/cross-cultural-
solutions-international-business.html>, Accessed, 05-11-10.

Tjosvold D, Leung K (2003), Cross Cultural Management, Foundations and Future,

Ashgate Publishing
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WTO Report (2008), Globalization and Trade, [Available From],

http://www.wto.org/english/res_e/booksp_e/anrep_e/wtr08-2b_e.pdf, Accessed, 04-
11-10