A report on plant selection based on HRM
1.0 Introduction. 2
2.0 Analysis of cultural values. 2
2.1 Power distance. 3
2.2 Uncertainty avoidance. 3
2.3 Individualism/ collectivism.. 4
2.4 Masculine/ feminine. 4
2.5 Outcome for comparing culture values. 5
3.0 Analysis of recruitment and training. 5
3.1 Recruitment Analysis. 6
3.2 Training analysis. 7
4.0 Analysis of payment and reward. 8
4.1 Payment and reward in USA.. 8
4.2 Payment and reward in Scandinavia. 9
4.3 Comparison between USA and Scandinavia. 9
5.0 Recommendations. 10
5.1 Advantages of cultural values. 10
5.2 Advantages of recruitment and training. 11
5.3 Advantages of payment and reward. 11
6.0 Conclusion. 12
With intensifying competition in multinational companies, human resources are in a strategic position. Accordingly, more and more attention is paid to cross-culture human resource management. A manufacturing company producing electronics for the mobile industry continues pursuing transnational strategy. The main purpose of this report is to choose an appropriate manufacturing plant for it in either USA or a Scandinavian country: Sweden, Norway, Denmark and Finland from perspective of human resource management.
The United States is a multi-cultural and multi-racial society, so it integrates pioneering, pragmatic, innovative spirit in its gradual development. On one hand, Americans pursue self-reliance, self-improvement and individual freedom. On the other hand, people in USA treat “maximize benefits” as their ultimate goal. Typical human resources mode in United States was formed in the early 20th century and regarding market competition as the core was its most prominent feature. This management model adapted to American belief in freedom and their emphasis on self-centered value.
The idea of social balance conceives in the human resource management in Scandinavia. Social balance mainly emphasizes on social justice, equity, as well as dealing with the contrast and contradiction in different class by government intervention (Paul and Glenn, 2012). Europeans concentrate on harmony between people, so they have a less sense of competition. In addition, Scandinavians also focus on reason, science, logical deduction and rational analysis.
2.0 Analysis of cultural values
When multinational company crosses borders in capital, equipment and technology, it also steps across culture. Hofstede is a famous Duch expert in studying cross-culture and he defines culture as collective mental programming in certain environment. There are differences in mental programming between different groups, regions, and nations, because the programming is formed in different life, work and education. Through in investigation and analysis, Hofstede (1983) concludes four dimensions symbolizing culture differences, which are power distance, uncertainty avoidance, individualism/ collectivism, masculine/ feminine. These four dimensions provide a basic tool for indentifying differences in national culture.