Page 165 - DMGT548_GLOBAL_HRM

Global HRM

Notes At some point, multinational management replaces expatriates with local staff with the
expectation that these work practices will continue as planned. This approach is based on
assumptions that appropriate behaviour will have been instilled in the local workforce through
training programmes and hiring practices, and that the multinational’s way of operating has
been accepted in the manner intended. In this way, the multinational’s corporate culture will
operate as a subtle, informal control mechanism—a substitution of direct supervision.
This depends on receptivity of the local workforce to adhere to corporate norms of behaviour,
the effectiveness of expatriates as agents of socialisation and whether cost considerations have
led the multinational to localise management prematurely. Thus, the standardisation adaptation
choice that confronts the multinational in other areas of its operations applies to the management
of the global workforce. Factors that influence standardisation are:

1. Host-country culture and workplace environment,
2. The mode of operation involved,
3. The size and maturity of the firm, and
4. The relative importance of the subsidiary.

9.1.1 Host-country Culture and Workplace Environment

National culture is a moderating variable in international HRM. Members of a group or society
share a distinct way of life with common values, attitudes and behaviours that are transmitted
over time in a gradual process. Values and attitudes towards behaviour are affected by culture.
Figure 9.1: Linkage between Culture and Behaviour

Home/host

Values
Corporate

Standardization
of work behaviour

 Placement s
 Procedures s Attitude
 Processes

Source: International Dimensions of Organisational Behaviour, 3rd (1997), p. 16
Work behaviour is culturally determined to the extent that it is contained in role definition and
expectations. For a multinational with subsidiary operations in 70 countries, establishing a
common corporate culture may be important for cohesion, but whether that corporate culture
can supersede or supplant other ‘cultures’ is a question. The managerial attitudes towards
subsidiary management may include a firm belief in the power of a strong corporate culture and
expectations that employees internalise or ‘buy into’ corporate values.
Standardisation of work practices involves behaviour modification through corporate training
programmes, staff rotation, rewards and promotion, most of which fall into ambit of the human
resource function. These activities concentrate on developing and maintaining corporate-defined
behavioural standards and processes that ensure their adherence. A corporate code of conduct is
a good example of this.

160 LOVELY PROFESSIONAL UNIVERSITY