Managing across borders and cultures

Abstract

Purpose

The aim of this paper is to ask why western organisations appear to be moving towards a single global HR model that minimises cultural differences compared with Asian organisations that seem to allow more variation in HR policies and practices. Moreover, we try to identify the problems western organisations face in taking this route and how they seek to overcome them.

Design/methodology/approach

The paper is based on a case survey approach whereby the author (and colleague) researched the global HR practices of some 70 organisations, interviewing a good proportion of the senior HR managers in these organisations. The focus was on global employment brands, culture and diversity, as well as talent management and HR service delivery model.

Findings

Western organisations seem to be moving towards a single global HR model that minimises cultural differences, whereas “polycentric” organisational forms are common in Asian companies. This may be to do with ownership structure and business model, but is also through Western organisations fashioning a “one company” philosophy and reducing costs through centralisation. This approach risks the creation of an ethnocentric world view based on a home country perspective that might damage diversity and lead to the cloning of the business leadership. The paper offers some risk mitigation strategies based around having common people principles but allowing distinctive local practice.

Research limitations/implications

The research is case study-based. There is no quantitative element to the results. Thus, the research has the benefit of in-depth understanding of organisational practice and its context, and the author (and colleague) do not have the benefit of testing the findings across a larger number of organisations. In particular, the East versus West distinction the author (and colleague) made needs further refinement. And, the author would want to look in more depth at the business structures of Western firms to see how much effect they have on organisational culture.

Practical implications

Organisations can take the findings, including solutions to the problems of ethnocentricity, and apply them to their own situations. In particular, it should encourage a more thoughtful review of the development of organisational culture and especially reflection on the dangers of standardisation and consolidation of HR services.

Originality/value

This paper is based on original case study research and uses these insights to consider some of the academic debates about organisational culture and HR services, specifically within the context of global operations. The advice to organisations will be new to practitioners, although it builds on previous work.

Citation

Reilly, P. (2015), "Managing across borders and cultures", Strategic HR Review, Vol. 14 No. 1/2, pp. 36-41. https://doi.org/10.1108/SHR-07-2014-0042