National Cultures And Their Impact On The Development Of Hrm Business Essay

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National Cultures will definitely have an impact upon the development and effectiveness of the HRM policies and strategies. The theories which are still in existence of human resource management policies and strategies have primarily adopted on the one side the assumption that organisations develop their own culture that is different from the industry and national contexts in which the organisations are implanted. Each culture has developed through its own background some variety and specific penetrations into the managing the organisations and their human resources. Each culture has also created some variety and specific blind spots in the art of organising and managing. Out of all the factors affecting the human resource management possibly nothing is more powerful than the national culture. This is due to the values that underlie human resource management are not found on individual country values.

For examining or analysing the impact of national culture on the human resource management policies, Hofstede's cultural dimensions of individualism or collectivism, uncertainty avoidance, power distance, masculinity or femininity will be applied. Those four factors are the Hofstede's cultural dimensions. These four cultural dimensions are clustered by all the countries and the people in each group exhibit the same behaviour. Many researches anticipate that managers in the multicultural global business community often come across cultural differences, which can impede with management practices in organisations. When comparing the cultures of distinct countries, the cross cultural researchers have focussed effort on an examination of a set of cultural value dimensions which are developed by the Hofstede. Hofstede's set of cultural dimensions can be ordered along the dominant value systems of the different countries. Dominant value systems have been cleared out in the organisations these people have built together such as their family structures, work organisations, literature, and form of government, educational structures, associations, religious organisations, buildings, and law and settlement patterns. All these factors demonstrate similar beliefs that derive from the similar culture whereas the value systems influence human thinking, action, feeling, and the behaviour of the organisations and the institutions in predictable ways, the value dimensions demonstrate elementary problems that any society has to manage with but where the solutions vary from country to country.


Individualism is defined as the tendency of people to care each person in their family and themselves. We can find individualism mostly in countries like United states of America, Sweden, Australia, Canada and Denmark. Generally, the countries which are having high individualism have beliefs, values and norms. In individualism, the people are responsible for themselves and the people are not necessary to emotionally dependent on groups or organisations. And the most important factor in individualism is they should not show favouritism to relatives or friends and if they do so that will be very unfair and sometimes illegal.

Power Distance:

The power distance is defined as the extent to which very less powerful members of the institutions, groups and organisations approves that the power is spread unequally. There are some countries in which the people obey the rules blindly which are ordered by the superiors have high power distance. The high power distance countries have beliefs, values and norms like each people should have a place which may be high or low, Most of the people should be dependent on the leader, Inequality is fundamentally good, the powerful are empowered to privileges. There are two groups of countries where one group are having low power distance and the other is having high power distance. The low power distance countries are United States of America, Ireland, New Zealand, Norway and Austria and the high power distance countries are India, Mexico, France, Singapore, Brazil and Indonesia.

Uncertainty Avoidance:

The uncertainty avoidance is defined as the extent to which the people feel endanger by some unexpected situations and have make beliefs and organisations that try to get rid of these. The countries with people who are feared to uncertainty like to have a high security and very fortified belief in experts and their intelligence and the other type of countries where the citizens are ready to invite the risks are associated with the unexpected are having low uncertainty avoidance. Especially, the countries with high uncertainty avoidance are classified by beliefs, values and norms which approve that the consequences should be neglected, laws must be followed and there are very important, deviate citizens and perspectives should be tolerated, authorities and experts are basically right and the low uncertainty avoidance groups like to represent the opposite of the above factors.


Masculinity is defined as a situation where the dominant values in a group are money, success and some other material things. He measured the dimension on a continuum ranges from masculinity to femininity. The High masculinity cultures contain values, norms and beliefs which are Gender roles must be clearly separated, exaggerated maleness must be good, Men are dominant, assertive and they should be decisive, work is most important than the other duties like family and advancement and the main thing is the money and the success are most important. Countries are distinguished in high masculine societies where the jobs are allocated by the gender. There are the men jobs and the women jobs. Men generally select the jobs which are long term and women select the jobs which are short term, which end before marriage. The collectivist, masculine countries are India, Hong Kong, Japan, China and Mexico and the individualist, masculine countries are Italy, Poland, Hungary and United States of America. The collectivist, feminine countries are Singapore, Portugal, Chile, Malaysia, Russia and the individualist, feminine countries are Spain, Netherlands and France.

The organisational culture and its environment factors in which organisation be find out the way of managing an organisation. The relationship among the human resources and the organisational culture can be explained as follows. When an employee or the member of the organisation understand and impute the culture of an organisation which can be said as 'the way the things are done around here', that will enable the employee to modify his strategy and the behaviour that fit with their personality and the important routines of the organisation activities.

A research is conducted by Newman and Nollen which indicates the organisation performance is improved in the companies where there is an agreement among the human resource practice and national culture. In the first level of business, where it is the managers who strictly practice human resource strategies and policies in accordance with value of the country, the performance of the business unit which is nothing but the return of assets, return on sales is better than the bonus of the employee will be higher. And if the hrm practices are not fit with the primary values overlap by employees will cause them dissatisfaction and they will show less commitment towards the work. Employee will perceive dissatisfied or distracted, due to their values are not same as the company values. So the job satisfaction and the commitment towards the work will be decreased and therefore they may resign from the job. So therefore, the organisation performance will be very decreased if this happens for a long period of time. In order to get rid of this the human resource practice should be suitable with the values of the employees.





National cultures will have a positive impact on the development and effectiveness of the human resource management policies and strategies. The factors like career development and compensation are positively influenced by the national cultures. So therefore, it is crucial to take cultural factors into consideration in adopting human resource management concept from the countries like western countries by the practicing managers. This is due to human resource management concept always including unspoken assumption which underlies certain values in the society. Finally, we can say that national cultures and their influence on the employees' behaviour inspire more optimism about the upcoming ideas on human resource management strategies and cultures.