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Abstract
This paper analyzes the meaningfulness of standardized human resource management practices across different organizational contexts and cultures. It discusses which dimensions of human resource management can be generalized in cross-cultural settings and which should be handled locally-specific. The paper identifies emic or culturally-bound challenges which inhibit a generalization of HRM practices.
Key Results
Three culture-related design philosophies are developed and discussed which may serve both as models of IHRM practices and as reference points for future research in the field of international human resource management. Socialization is identified as the mechanism through which disparate pieces of MNCs are held together, and HRM is seen as the enabler of such integration.
HRM: From a Support Function to a Strategic Dimension Human resource management (HRM) is evolving from solely that of a support function, characterized by compliance with external regulation regarding selection, termination, compensation, benefits administration, and labor relations to one of strategic importance which is increasingly being asked to assume important new roles that pertain to globalization (Kerr/Von Glinow 1997). Some have even identified HRM as the glue that holds global organizations together (Evans 1992; Gupta/Govindarajan 1991).
These new roles include international extensions of more traditional human resource management support functions such as providing country-specific knowledge of union and labor policies, legal and regulatory requirements, compensation, and benefits practices. They include preparing people for international assignments and reentry after those assignments are completed (Black/Mendenhall 1990; Teagarden/Gordon 1994; Tung 1981). Human resource management can be used to enhance organizational learning and to help the company build a world-class workforce poised for global competition in the next century (Barney 1991; Prahalad/Hamel 1990; Bartlett/Ghoshal 1989; McKee 1997; Teagarden/ Butler/Von Glinow 1991).
Perhaps most importantly, human resource management is becoming a strategic vehicle which allows firms to balance headquarters demands for global coordination or integration with subsidiary level demands for adaptation or local responsiveness (Bartlett/Ghoshal 1989). This balancing act can be seen whether the organization in question is a joint venture or some other strategic alliance, positioned off-shore or even a large domestic firm (Lorange 1986).
We assert that the management of human resources either in the domestic context or internationally must be approached at the strategic level (Butler/Ferris/Napier 1991; Schuler/Dowling/De Cieri 1993) and that significant balance cannot...