AM Lecture 6

Management > Asian Management > Background > Under stress > HRM abroad

HRM abroad

There are three HRM approaches:

1. Mechanistic: A simple transplant of the home country HRM practices, with not adaptation. It is characterised by its focus on external means of control (often punishment) to stimulate desirable behaviour from the local workers.
2. Paternalistic: Cultural problems are handled by forming close relationships between expatriate managers and the local labour force and transferring home HRM systems with little modification. There is an emphasis on positive rewards to those who are seen favourably by management.
3. Developmental: Integration of home country customs with local HRM systems. This includes a sophisticated reward system of culturally appropriate benefits.

Paik and Sohn (1998) studied foreign HRM in Mexico, finding that Japanese and US firms used mostly developmental HRM, while Korean companies uses mechanistic control and paternalistic human relations. This shows a low level of adaptation of HRM systems.

The study suggests that Korean management use control to get high levels of efficiency and affect corporate goal-orientated behaviour. There is little attempt to motivate or develop employees and to adapt HRM practices to the local cultural context.

There has been some reported attempts to form relationships with employees to avoid labour conflicts, but the lack of attempt to understand the local culture makes it difficult and it conflicts with the mechanistic and paternalistic approaches.

(Note: this correlates to Taylor et al. Korean companies in China)

HRM cultural traits

Characteristics/paradoxes

Change?

Leadership