Cultural Values, HRM and Performance of Italian Companies in China (original) (raw)

How Cultural Determinants May Affect HRM: The Case of Italian Companies in China

Research and Practice in Human Resource Management, ISSN: 0218-5180, 2010

Human resources (HR) face several dilemmas on the international stage. Often, these dilemmas are related to cultural determinants that may deeply affect HR strategies and practices. The main aim of this study is to address the topic of cultural diversity within organisations operating in highly divergent cultures. In particular, the analysis will be focused on the strategies and practices implemented by Italian companies to manage HR in China, by estimating the growing influence of Chinese cultural values on the dynamics and complexity of intercultural human resource management (HRM) and suggesting that different approaches should characterise companies’ strategies when dealing with distinct cultural backgrounds. The study, which was undertaken with 149 executives from Italian companies in Mainland China, demonstrates the degree of knowledge of a cultural environment has a direct correlation with HR strategies and practices. The results show that a better knowledge of cultural values of Chinese individuals may represent a strategic tool to Italian companies in China. The findings of the study have potential to help decision makers of Italian companies to develop strategies able to overcome cultural barriers, to formulate effective HRM policies and to increase company competitive advantage.

POROVNANIE KULTÚRNE RÔZNYCH SPOLOČNOSTÍ S OHĽADOM NA VYBRANÉ ASPEKTY RIADENIA ĽUDSKÝCH ZDROJOV / COMPARISON OF CULTURALLY DIVERSE COMPANIES WITH REGARD TO SELECTED ASPECTS OF HUMAN RESOURCE MANAGEMENT

The paper deals with the issue of international human resources management, with special attention being paid to the transfer of HRM practices from the countries where the parent company resides in to the countries where the branches of international companies were established. The paper presents the results of the research carried out in the Slovak Republic. The aim was to find statistically significant differences in selected aspects of HRM between companies with different culture (companies whose parent companies reside in a country with different culture). The research focused on the comparison of American, German, Japanese (or Asian) and Slovak companies operating in the Slovak Republic. The research has confirmed the existence of statistically significant differences in the employment of expatriates and in some aspects of employee remuneration, namely the use of age criteria and the number of years worked. Key words: International human resource management, human resource management practices, HRM practices transfer, culture

Human Resource Management in China: An Italian Perspective

2017

Human resources management (HRM) in China requires a different approach from the ones commonly implemented in Europe or the United States. For the casual observer, what stands out are the difficulties that Chinese workers are accustomed to facing, such as overtime work, extreme working conditions due to hazardous materials, a lack of safety regulations, and an increasing unemployment rate in low technology energy-intensive industrial sectors that is casting a shadow over the near future. The Western media tends to focus on the negative consequences such as environmental and social degradation after three decades of China’s so-called ‘economic miracle’ accompanied by double-digit GDP growth. However, it is imperative to contextualize these and other related issued within the country as a whole. While China has been evolving at breakneck speed, this fast-changing process has led to China becoming the ‘world’s factory’, it was able to reinvent itself during past and current global econ...

THE FACT of CULTURAL DIMENSIONS of HR in MULTINATIONAL COMPANIES

Agora Psycho-Pragmatica, 2020

The main aim of this study is to analyze the fact of cultural dimensions on HR in multinational companies, where they are located in Turkey, to see if there is a correlation result between power distance and individualism\collectivism dimensions for an only HR department, rather than including the whole departments of companies. The article examined only two of the six dimensions of Hofstede which are Power Distance and Individualism. It was research conducted to examine the relationship between two different dimensions in the human resources department in multinational companies. Application areas for having interviews with 15 people from three different multinational companies and 104 participants answering the survey in the structure of human resources departments operating in Turkey were selected. The research was created especially about the significance of the lack of theoretical research on culture and cultural practices in Turkey to see to what extent can reflect. According to the test result, it was found that a positive and significant relationship between power distance and individualism\collectivism dimensions in the HR department.

MULTICULTURALISM AND HUMAN RESOURCE MANAGEMENT PRACTICES

The globalization of business, increased mobility of labor across geographic borders is leading to multiculturalism among several countries. For instance, in countries such as Canada, US, UK, India, and Australia, multiculturalism is increasingly becoming an integral part of the national identity. In addition, cross-border mergers and acquisitions (eg. Arcelor-Mittal) and deployment of teams for certain projects, require organizations to draw from a pool of human resources from different countries.

International Human Resource Management and National Cultural Challenges

Pamukkale University Journal of Social Sciences Institute, 2014

A number of researchers have investigated the role of and importance of national culture on international human resource management and it is named as the major challenge that human resource management should be aware of when going global to achieve its organizational goals. Getting individuals from different ethnic backgrounds working together may be difficult in some parts of the world and international human resource management professionals should be aware of this cultural difficulty. This paper studies the influence of national cultural challenges on international human resource management which is investigated commonly by Hofstede's cultural dimensions, achievement motivation theory, equity theory, expectancy theory, job design, work centrality, and rewards.

Influence of Cross-Cultural Diversity on Human Resource Management Practices

The cultural diversity of organizations all over the globe has increased as a result of the globalisation of the world economy. Recent estimates indicate that there are over 1000,000 firms with international operations, and they have annual revenues in excess of $3500 billion. Not surprisingly, the growth in the number of firms with international operations has been accompanied by an increase in the cultural diversity of their employees. All aspects of organizational functioning reflect permeable national boundaries. Yet much of our personal and interpersonal interactions are guided by cultural values, expectations, and attitudes. Some values transcend cultural boundaries and are mutually reinforcing. Other cultural values create interactions with high potential for conflict, misunderstanding, poor performance, and ultimately, individual and organizational ineffectiveness or failure. The increase in cultural diversity of Indian firms may lead to substantial benefits, including increased creativity, improved decision making, and broader markets for products. However, more cultural diversity also may pose important challenges for these firms, whether or not they have multinational operations. For instance, as cultural diversity increases, firms may need to develop new strategies for managing and motivating their employees. Other cultural values create interactions with high potential for conflict, misunderstanding, poor performance, and ultimately, individual and organizational ineffectiveness or failure. Such problems are influencing HR practices in many organizations.

Managing human resources across cultures: a comparative analysis of practices in industrial enterprises in China and The Netherlands

ABSTRACT Abstract Although researchers and practitioners have come up with many good ideas for improving the employment relationship, there is no evidence for universally applicable practices. Prior theoretical work and research in the area of (international) human resource management indicate that cultural and contextual constraints are responsible for the problematic nature of transference of practices. This study illustrates and explains the contextual as well as cultural boundaries through a direct comparison of practices as used in a matched sample of industrial companies in China (n=97) and The Netherlands (n=47). It is argued that differences in organizational structure, cultural values and labour regulations account for the variation between countries. The results show considerable differences between China and The Netherlands in the HRM practices of industrial enterprises. Also, the organizational culture of the companies studied varies between the two countries and the differences found are clearly in line with differences on the national cultural level.