To integrate or not to integrate: HRM practice of Chinese banks in Canada

Abstract

Are emerging market banks necessarily prone to localize HRM when entering developed markets? According to this comparative case study of two Chinese banks in Canada, we instead found a trend toward the integration of HRM with the parent companies’ practices, with varying levels of integration based on factors such as international experience and investment method. Importantly, the current practice, which may appear to be suboptimal in light of the localization imperative, has not prevented the banks from attaining steady financial performance, partly enabled by the carrying-over of home grown customers and the presence of a distinct co-ethnic community. However, such practice may have adverse effects on their long-term success, especially given their claimed aim to become global competitors. A conceptual model is built upon these findings, which also offers important practical implications.     

How culture-sensitive is HRM? A comparative analysis of practice in Chinese and UK companies

There has been some concern about the extent to which models and practices of HRM are capable of being transferred from one country to another. This emerged in the late 1970s as concern that Japanese ideas might be adopted uncritically by US companies, and during the 1980s as concern that these ideas, after recycling within the US, might not be totally appropriate for consumption in other parts of the world. Further urgency is added to the question by the pressures on many organizations to develop their businesses internationally, or globally – since this increasingly means they have to consider and establish HRM policies which can span different national systems and cultures.

This paper considers the problem through a direct comparison of practices in matched Chinese and UK companies in order to establish where variations occur both within and between countries. It is evident that there are considerable variations in the form of HRM in different settings, but also some surprising similarities. Thus, for example, there are more similarities in manpower planning systems between Chinese companies and some of the UK companies than there are between all the UK companies. In this case it can be concluded that these elements are not greatly affected by national (and assumed cultural) differences. On the other hand, there is a sharp difference between the UK and Chinese companies with regard to pay and reward systems, but much consistency within each country. This suggests that there may be deep-seated differences between the two countries with regard to attitudes towards rewards which will limit the transfer-ability of HRM ideas in this area.     

Chinese multinationals’ approach to international human resource management: a longitudinal study

Abstract

This study explores how emerging market service firms, operating in developed markets, approach human resource management (HRM). Data analyzed in this article were drawn from a longitudinal case study of the Australian subsidiary of a Chinese multinational bank. We find that subsidiary HRM follows host country and global best practices. However, the way that this hybrid HRM system was implemented shows traces of Chinese origin. A key finding from this study is that although our case bank officially adopted a polycentric approach to subsidiary staffing, employing host country nationals, the subsidiary predominantly employed locals with a Chinese ethnic background. We also find the case bank’s strategy in international HRM has evolved from a focus on localization to global standardization. This global standardization, however, is shaped in line with global best practices rather than home country management model. These findings highlight the need for future studies to adopt a more nuanced approach to examining international HRM strategies, especially when analyzing host country effect or localization strategy.     

Towards a configuration of socially responsible human resource management policies and practices: findings from an academic consensus

Abstract

The integration of socially responsible behaviour has become a strategic priority for companies in recent years. Academic contributions that merge the fields of corporate social responsibility (CSR) and human resource management (HRM) have been expanding, demonstrating a broad sweep of benefits reflected in greater levels of commitment, motivation, and performance by employees. However, little has been clarified about what academics and business management understand to be a configuration of socially responsible human resource management (SR-HRM) practices. This paper aims to define and provide an initial academic approximation of a set of socially responsible human resource practices. In order to accomplish this objective, a content analysis was conducted based on a review of the literature, CSR reports, and international CSR standards such as the Global Reporting Initiative and ISO 26000. The theoretical findings were supported by a panel of experts who inspected them over three rounds of reviews. The sample for the study was created by consulting the academic literature, strengthened by the input from the panel of experts. The results show an academic consensus of 80%, and support the existence of a valid configuration of 8 socially responsible human resource policies divided into 32 practices.     

The role of Vartan Bhanji in implementing HRM practices in Pakistan

The local adaptation of Western HR concepts in more traditional societies is an important topic for international HRM research and practice. We analyze the role of Vartan Bhanji, a traditional notion constituting and governing local social networks, when implementing such concepts in the Pakistani context. Based on a detailed case study of a privatized hospital, our analysis shows that Vartan Bhanji is both supporting and limiting Western HRM practices, in particular recruitment and selection, appraisal, compensation and promotion. The study reduces the knowledge gap for Pakistan, a country underrepresented in the international HRM discourse; illustrates the role of traditional social networks in companies using Western HRM concepts and supports calls for contextualizing HRM practices and research.     

The effect of revised IAS 14 on segment reporting by IAS companies

International Accounting Standard (IAS) 14 on segment reporting was revised in 1997. IAS 14R substantially changed segment reporting requirements in response to numerous criticisms of the original standard. The objective of this study is to determine how IAS 14R affected the segment disclosure practices of companies claiming to comply with IAS.

This paper examines the following questions: (1) What items of information are disclosed under IAS 14 and IAS 14R? Was there a gain or a loss of information disclosed for business and geographic segments with the implementation of IAS 14R? (2) Has the number of business and geographic segments reported by companies changed with the implementation of IAS 14R? (3) Are companies disclosing the items required by IAS 14R? (4) Are companies' segment reporting practices related to size, country of domicile, industry, international listing status, and having a then-Big Five auditor?

We find that the impact of IAS 14R is mixed. Companies are responding to IAS 14R, but not wholly embracing it. Our findings suggest that companies audited by a Big Five (now Big Four) firm and, to a lesser extent, companies that are larger, listed on multiple stock exchanges, and from Switzerland have greater compliance with IAS 14R than other companies in our study.     

Union substitution effects of human resource management practices in South Korean workplaces, 2005–2013

Abstract

This article explores the association between various workplace-level HRM practices and a decline in union strength using a unique longitudinal survey data-set gathered in South Korea from 2005 to 2013. It addresses the underlying theoretical mechanisms by which HRM programs substitute for the roles labor unions have traditionally played. Suggesting more nuanced theoretical implications about HRM practices and union decline, statistical analyses reveal that workplaces that have implemented HRM practices have unions with a weaker organizational base than those without such practices, but that certain HRM programs correlate with unions with a strong collective voice in management decision-making. This article identifies the new roles for unions in South Korea in the era of HRM.     

Socio-Cultural Values and Organizational Culture

SUMMARY

This exploratory study examines if certain dimensions of the socio-cultural values could explain certain types of organizational culture. The proposition merits investigation because it has important implications for local as well as international and global companies. The study first investigates employees' perceptions of the existing and preferred cultural orientations in four Jordanian organizations, and then it compares the results with other studies conducted in other cultures (American and South African). In Jordan data were collected by means of Harrison and Stokes survey for diagnosing organizational culture, the same instrument used in the USA and in South Africa. The study concludes by suggesting that in certain countries the national culture's effects may appear in a particular dominant organizational culture, that is desired by the management, but not actually preferred by employees. This implies that it is more beneficial for international and transnational corporations to develop “strong” cultures rather than to encourage local units to adapt to their national cultures.     

Constituting the Academic Performer: The Spectre of Superficiality and Stagnation in Academia

Abstract

Journal rankings and performance measurement schemes tend to become increasingly influential within many fields of research, thereby consolidating the prevalence of performativity on the life and research endeavours of many academics. The latter are nowadays often pressured to publish in ‘top’ journals to ensure they have a displayable level of performance. Drawing from literature on identity, this paper introduces and details the construction of the academic performer – a representation of identity which is increasingly typical of what it means today to be an actor in academia, in terms of attitudes and behaviour. Fundamentally speaking, this paper constitutes a critique of a detrimental tendency in academia, that is to say the excessive spread of performance measurement practices and the flow of superficiality and conformity they consolidate.     

Reporting on sustainability and HRM: a comparative study of sustainability reporting practices by the world's largest companies

As a response to the growing public awareness on the importance of organisational contributions to sustainable development, there is an increased incentive for corporations to report on their sustainability activities. In parallel with this has been the development of ‘Sustainable HRM’ which embraces a growing body of practitioner and academic literature connecting the notions of corporate sustainability to HRM. The aim of this article is to analyse corporate sustainability reporting amongst the world's largest companies and to assess the HRM aspects of sustainability within these reports in comparison to environmental aspects of sustainable management and whether organisational attributes – principally country-of-origin – influences the reporting of such practices. A focus in this article is the extent to which the reporting of various aspects of sustainability may reflect dominant models of corporate governance in the country in which a company is headquartered. The findings suggest, first and against expectations, that the overall disclosure on HRM-related performance is not lower than that on environmental performance. Second, companies report more on their internal workforce compared to their external workforce. Finally, international differences, in particular those between companies headquartered in liberal market economies and coordinated market economies, are not as apparent as expected.     

International Convergence of Accounting Practices: Choosing between IAS and US GAAP

This study examines reporting practices of a sample of foreign listed and domestic‐only listed companies from the United Kingdom, France, Germany, Japan and Australia to determine the extent to which companies voluntarily use “international” standards. Two types of use of non‐national standards in the consolidated accounts presented to the public are considered: adoption of “international” standards instead of national standards, and supplementary use where “international” standards are used in conjunction with national standards. “International” standards are defined as US GAAP or IAS (now IFRS). The study tests for a preference for either set of standards and considers the relationship of choice of regime with firm attributes. The results show significant voluntary use of “international” standards in all five countries and among foreign listed and domestic‐only listed companies. Companies using “international” standards are likely to be larger, have more foreign revenue and to be listed on one or more foreign stock exchanges. US GAAP is the predominant choice, but IAS are used by many firms in Germany and some in Japan. Firms listed in the United States' regulated markets (NYSE and NASDAQ) are more likely to choose US GAAP, but companies traded in the OTC market often select IAS. The study demonstrates for managers and regulators that there is considerable support for “international” standards, and that choice of IAS or US GAAP relates to specific firm characteristics which differ according to a firm's country of origin. Most use of “international” standards reflects individual countries' institutional frameworks, confirming the key role of national regulators and standard setters in assisting companies to achieve more comparable international reporting.     

Towards factories of the future: migration of industrial legacy automation systems in the cloud computing and Internet-of-things context

ABSTRACT

The vision of factories-of-the-future is motivating many industrial companies to modernise their existing portfolio of systems and services to maintain market share and improve business agility. For long-lived industrial systems, it is challenging to adapt legacy assets to a service-oriented stream in cloud computing and Internet-of-things contexts. For this reason, many research studies have proposed techniques and methodologies to migrate legacy industrial functions and systems at different hierarchy levels of automation control. This paper presents an overview of these techniques and methodologies, as well as industry practices to achieve the vision of factories of the future. Better understanding the challenges encountered in legacy migration processes will help researchers and practitioners in their further efforts.     

Pluralism in retreat? A comparison of Irish and multinational manufacturing companies

Traditionally it has been argued that the industrial relations practices of multinational corporations tended to conform with the prevailing industrial relations practices of the host country. Recent arguments claim that this trend has now been reversed and a new orthodoxy prevails which originates in the multinational corporation's country of origin. Drawing on a sample of companies in the Irish manufacturing sector, this paper examines the extent of these changes through a comparison of indigenous and foreign companies. The evidence of change emerging from this survey does not fully support the hypothesis that the practices of multinationals are significantly different or that there is a new orthodoxy in industrial relations originating in the multinational sector. We suggest that the impetus for change in employment practices is not to be found in the multinational sector but in the dynamic nature of competitive markets and the increasingly international mobility of capital.     

Globalization of Multicultural Management

Abstract

Based on a literature review of intellectual contributions by philosophers, scientists, researchers and scholars, this article illuminates the evolutionary perspectives of multicultural management systems. It bears in mind that international management practices reflect the societies within which business organizations exist. It is suggested that multiculturalism, which focuses on meritorious values of organizational incumbents, is an appropriate framework for international organizations. Many studies found evidence that multinational corporations in demographically diverse environments are more likely to emphasize over assimilation of cultural, ethical and legal value systems and that values proposed for international corporations to emphasize on similarities rather than differences.     

The impact of culture on HRM styles and firm performance: evidence from Japanese parents,Japanese subsidiaries/joint ventures and South Asian local companies

This paper investigates national and organizational cultural influences among managers in three types of companies: Japanese companies in Japan, South Asian domestic companies and Japanese subsidiaries/joint ventures in South Asia. The findings suggest that a Japanese parent company's culture tends to have a much stronger influence with Japanese companies operating in Japan. Japanese parent company culture tends to have less influence than the South Asian national culture in shaping the HRM styles and practices in Japanese subsidiaries/joint ventures operating in South Asia. While some South Asian firms are in the initial stages of learning about participative HRM from foreign companies, most still tend to maintain their national culture and traditional ways in the operating systems of their organizations.     

Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line

This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource practices. Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric). Data from international human resource professionals in forty-six companies generally supported the hypothesis that HR practices (recruitment, selection, socialization) varied by global strategy. In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic variables (return on capital, sales growth, return on equity, profit margin). Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies. Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given.     

Conditional altruism: Effects of HRM practices on the willingness of host‐country nationals to help expatriates

The assistance of host‐country nationals (HCNs) both within the workplace and in the external environment plays a significant role in expatriate adjustment and work performance on international assignments. Extant research exploring antecedents of HCNs' attitudes and behaviors toward expatriates focuses on personal and intrapersonal factors but overlooks organizational contextual effects. In this study, we propose and test a model that HCNs' willingness to help expatriates is influenced by HRM practices in international subsidiaries of multinational enterprises (MNEs). Results of analyzing data collected from Chinese subsidiaries of South Korean MNEs showed that high‐commitment HRM practices directly and indirectly influence HCNs' willingness to help expatriates through the mediation of perceived organizational support (POS). Socially responsible HRM indirectly influences the criterion variable through the mediation of organizational identification. Moreover, POS and organizational identification sequentially mediate the effect of high‐commitment HRM on HCNs' willingness to help expatriates. These findings shed some light on organizational antecedents that go beyond personal and intrapersonal factors of HCN attitudes and behavior toward expatriates.     

Transferring human resource practices from the United Kingdom to China: the limits and potential for convergence

Substantial effort has been devoted to exploring the transfer of human resource management practices within multinational companies. Particular attention has been paid to countries with ‘strong’ HRM traditions, to transfers between economically developed countries and to firms in the manufacturing sector. This paper addresses the transfer of a British-owned retail firm's HRM practices from the United Kingdom to the People's Republic of China. From a variety of perspectives the expectation might be that the transfer of parent-country practices in this instance would be limited: HRM has not been considered a particular strength of UK firms; retail firms operate in a multi-domestic context directly serving local customers rather than as part of an integrated international production network; and there is a high cultural distance between the UK and China. When this multinational retailer entered the China market the express intention was to replicate as nearly as possible the management style of its UK stores. This paper examines the extent to which the firm's parent-country HRM practices, which the company increasingly considers as a key source of competitive advantage, have in fact been transferred to the Chinese stores. The paper seeks to provide fresh insights on the phenomenon of transfer by adopting a qualitative case study approach. This study also focuses on shopfloor employees' perspectives rather than purely the view of managerial staff, as has tended to be the case. Several aspects of HRM transfer are explored briefly: communication with the workforce, work pattern, age composition of the workforce, reward system, training, and employee representation. Attention then focuses on the transfer of the firm's relatively flat organizational structure to a country which is perceived to place a high value on hierarchy, and where hierarchies tend to be quite rigid and clearly demarcated. This provides useful insights into the nature of the transfer process. It is suggested that structural dimensions such as the country of origin, the degree of international production integration and the nature of product markets appear to have less utility in explaining the transfer of HRM practices than institutional and cultural features of the host-country environment and, above all, specific firm-level practices and the presence of expatriates in key management roles.