Page 59 - DMGT548_GLOBAL_HRM

Global HRM

Notes Control through corporate culture: Some advocates of more complex structural forms regard
the use of cultural control as an effective informal control mechanism. Corporate culture is
variously defined, but essentially it refers to a process of socialising people so that they come to
share a common set of values and beliefs that then shape their behaviour and perspectives. It is
often expressed as ‘our way of doing things’. Cultural control may be a contentious issue for
some – evidence of multinational imperialism where corporate culture is superimposed upon
national cultures in subsidiary operations. However, its proponents offer persuasive arguments
as to its value as a management tool. The emphasis is on developing voluntary adherence to
corporate behavioural norms and expectations through a process of internalisation of corporate
values and beliefs. The literature on corporate culture recognises the role played by HR activities
in fostering corporate culture. For example, Alvesson and Berg regard HRM activities as important
means of establishing corporate culture identity. HR activities that build corporate culture
include recruitment and selection practices, as firms hire or ‘buy’ people who appear to hold
similar values. Training and development programs, reward systems and promotion are also
activities that reinforce company value systems.
Such reinforcement is considered to lead to more committed and productive employees who
evince appropriate behaviour and therefore reduce the need for formal control mechanisms.
Placement of staff is another method. Some global firms have become even more systematic in
their efforts to achieve control by way of shared corporate culture. These functions also help
organisations sustain in an international environment.

Self Assessment

State whether the following statements are true or false:
8. International operations do not need any control mechanisms.

9. Networked organizations need processes to facilitate contacts.
10. Network relationships are built and maintained through personal contact.
11. Staff transfers are also an important part of the required management processes, in
particular that of control.
12. Expatriates have no role in the transfer of corporate norms and values as part of corporate
cultural.

13. The level of strategic control needed in an international operation is depicted along two
axes; the type of subsidiary operating in each country.

3.3 Sustaining International Business Operations

Within multinational companies, there is a need to balance international strategy with local
conditions and needs and move towards new organisational structures.
Global HRM functions like staffing, training and development of employees going out of nation
for assignments or working in a different environment, is essential to be paid attention to. One
of the key aspects of the strategic management of modern organisations is the balance between
differentiation and integration. While flexibility is required in the way business is conducted
differently in different locations, there is a need to integrate activity and coordinate not only
business activity but the way people are developed and deployed within the international
organisation.

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