{"id":6542,"date":"2024-01-19T09:32:00","date_gmt":"2024-01-19T08:32:00","guid":{"rendered":"https:\/\/insights.ieseg.fr\/?p=6542"},"modified":"2024-06-12T16:10:43","modified_gmt":"2024-06-12T14:10:43","slug":"localized-approach-international-hrm","status":"publish","type":"post","link":"https:\/\/insights.ieseg.fr\/en\/resource-center\/management-society\/localized-approach-international-hrm\/","title":{"rendered":"Research in brief: the importance of developing a \u201clocalized\u201d approach to international HRM"},"content":{"rendered":"\n

International companies may develop global policies for their HR practices \u2013 but one of the key challenges is ensuring that practices are adapted to the national culture and legal frameworks. A recent study by professors from I\u00c9SEG <\/a>and Guanghua School of Management (Peking University) has analyzed how three different HRM practices can impact corporate innovation across different national cultural contexts.<\/em><\/p>\n\n\n\n

The researchers surveyed more than 300 manufacturing\/production companies \u2013 across 13 countries\/regions including three continents \u2013 to study the interaction between the national culture and three different HRM activities with the potential to drive innovation. Namely, cross functional training, financial incentives, and employee participation schemes. They assessed the impact of these practices on the company\u2019s ability to develop new products and services (innovation).<\/p>\n\n\n\n

The results highlighted that these practices \u2013 designed to improve employees\u2019 motivation, ability, and opportunity to contribute to innovation \u2013 can be effective, but only when they fit broadly with the local cultural context. <\/p>\n\n\n\n

\u201cWe found that these practices have the capacity to either complement or supplement certain cultural elements within countries,\u201d explains Jingjing YAO, one of the authors of the study.<\/p><\/blockquote>\n\n\n\n

How do practices fit with the local culture?<\/strong><\/h2>\n\n\n\n

For example, financial incentives for individual employees can enhance innovation in highly \u2018masculine\u2019 cultures (using the definition of the social psychologist Geert Hofstede).<\/a> These are cultures that tend to have different expectations for men and women and highlight a preference for material rewards for success (examples in the study included Japan and Italy). In countries that are considered to be more \u2018feminine\u2019 with more emphasis on quality of life and modesty, such as Sweden and Finland, they found that the implementation of such financial rewards did not affect innovation.<\/p>\n\n\n\n

Cross functional trainings are initiatives designed to help employees develop new skills and knowledge notably through interaction with colleagues from different departments and services. The researchers found that this type of training positively affected innovation in cultures that are considered \u201ccollectivist\u201d (again using the definition by Hofstede). These are cultures that prioritize the needs of the group above the needs\/wishes of an individual and examples included South Korea, China and Brazil.<\/p>\n\n\n\n

\u201cIn cultures with higher degrees of individualism, however, we found that this type of training actually hindered innovation,\u201d adds Martin STORME. This was the case for countries like the UK and Italy.<\/p><\/blockquote>\n\n\n\n

Finally, they found that HR activities designed specifically to enable employees to contribute suggestions and ideas (for example through meetings, campaigns, task forces or working groups) were only effective in what are referred to as \u201chigh power cultures\u201d (again using the dimension outlined by Hofstede). These are cultures which are traditionally marked by high levels of hierarchy and where employee roles are well defined. Examples included China, Vietnam and Brazil.<\/p>\n\n\n\n

In countries with lower levels of hierarchy (for example in Sweden, the UK, Germany & Finland) employees are almost certainly more used to speaking up and putting forward ideas, so this kind of initiative is likely to have little or no added value.<\/p>\n\n\n\n

Practical applications for international HR<\/strong><\/strong><\/h2>\n\n\n\n

\u201cOur study has important implications for HR managers in international companies that rely heavily on innovation to survive and grow. When thinking of HR initiatives designed to impact employees\u2019 abilities, motivations or opportunities<\/strong>, they really need to pay attention to the local cultural context,\u201d explains Elise MARESCAUX.<\/p><\/blockquote>\n\n\n\n

\u201cFor example, we have shown this type of cross functional training can be very effective in collectivist cultures where the team comes becomes before the individual. We also highlight that individual financial incentives can be a shrewd strategy in certain countries – but would be a waste of resources in others. Finally in hierarchical cultures, we highlight that it is wise to implement initiatives that give opportunities employees to share and put forward ideas.\u201d<\/p>\n\n\n\n

Standardized or localized approach to global HR?<\/strong><\/h2>\n\n\n\n

The paper notes that the findings, therefore, \u201clend more support for a localized approach\u201d, and suggest that HRM practices should be implemented, where possible, in a decentralized manner across multinational subsidiaries, so they can be tailored to fit with the local national culture to foster innovation.<\/p>\n\n\n\n

\u201cCertain management practices may be universally effective in multinational companies as the essence of these practices is the task, but HRM practices need to take into account the local culture as the essence of these practices is the people,\u201d the paper highlights.<\/p>\n\n\n\n

\u201cTherefore, we would encourage HRM managers implementing such policies to think carefully before taking a one size fits all approach,\u201d adds Jingjing YAO.<\/p>\n\n\n\n

\u201cA contingency approach to HRM and firm innovation: The role of national cultures\u201d, Human Resource Management (Volume 62, Issue 5 – September\/October 2023) authored by Jingjing Yao, Elise Marescaux (I\u00c9SEG), Li Ma (Guanghua School of Management, Peking University, Beijing, China, and Martin Storme (I\u00c9SEG).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

International companies may develop global policies for their HR practices \u2013 but one of the key challenges is ensuring that practices are adapted to the national culture and legal frameworks. A recent study by professors from I\u00c9SEG and Guanghua School of Management (Peking University) has analyzed how three different HRM practices can impact corporate innovation … Research in brief: the importance of developing a \u201clocalized\u201d approach to international HRM<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":3077,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[488],"tags":[298,428,412,18,732],"article-type":[12],"acf":[],"yoast_head":"\nThe importance of developing a \u201clocalized\u201d approach to international HRM<\/title>\n<meta name=\"description\" content=\"International companies may develop global policies for HRM practices \u2013 but one of the key challenges is ensuring that practices are adapted\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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